The Arunachal Pradesh government has decided to provide zero interest crop loan to marginal farmers of the state to enable them easy access to formal credit through banking channels, an official said on Monday.
According to a Finance Department notification of May 7, 2017, the government has decided to launch "Chief Minister's Krishi Rinn Yojana", under which it would provide interest subvention of 4 per cent on crop loan/Kisan Credit Card (KCC) limit up to Rs 3 lakh sanctioned by all banks to all farmers of the state during the current financial year.
This interest subvention will be over and above the subvention given by the central government to banks and the farmers as per policy issued by the Reserve Bank of India and NABARD.
"The farmers would also get interest relief at the rate of 3 per cent per annum if they promptly repay their short-term production credit (crop Loan) within one year of disbursement of such loan. In effect, farmers who take loan up to Rs 3 lakh and make timely repayments will get access to zero interest credit facility," the official said.
The NABARD will act as channel partner for reimbursement to banks against interest subvention amount claims.
A certificate of area and crop being cultivated issued by circle officer will be accepted as valid documents by banks for issuance of Kisan Credit Card to the farmers, the notification said.
Benefit under the scheme will be extended to farmers availing KCC/crop production loan from commercial banks, APRB and APSCAB Ltd at the same terms and conditions prescribed by the RBI/ NABARD.
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Chief Minister Pema Khandu has set a target of 7,500 farmers to be covered under the Chief Minister's Krishi Rinn Yojana in this financial year.
The district-wise or bank-wise target will be circulated separately to all District Collectors and concerned banks. This target will be reviewed later and any bank which fails to meet the stipulated target would be reported to the RBI and Department of Financial Services, he said.
Moreover, the circle officers will function as Financial Extension Officers of the state government and also help the banks in timely recovery of crop loans.
--IANS
rrk/ruwa/vt