Krishi Rin Samadhan Farmer Loan Waiver Yojana Farmers Scheme (Kisan Karj Rahat) in MP

The Madhya Pradesh Government has come up with another scheme for the farmers’ welfare. Krishi Rin Samadhan Yojana or Farmers’ Loan Waiver Scheme in MP will soon be started implementing. Under this scheme the interest payment on the farm loan will be waived off. Any farmer who has been taken loan from Banks can now repay the loan in 2 instalments in this current financial year.

Launch details

The scheme was launched officially in the month of June in the year 2017. In a recent report, published during the last week of the March, it was said that the state government will waive off the interest amount of the farmers. Small farmers who are unable to repay the loan taken a year back can avail the scheme.

Key Features

Objective: The scheme was launched for an obvious reason. Marginal farmers and the small ones who are from economically weaker sections are suffering from heavy loan burden, will be able to forgo their interest amount with this scheme. Also the state is targeting to doubling the income of farmers by the year 2022.
Repayment: According to the scheme rules, farmers can enjoy their existing loan at 0% interest. The state government has said that farmers can repay the loan in two broad instalments instead of monthly instalments. They have to repay 50% of the total amount first and then another half within stipulated time.
Credit Limit for new Loan: Along with zero interest loans, the state has started a new credit limit. In which once the farmers will repay their first instalment of existing loan they can avail this new credit limit. In this new rule, state will cover major amount (80%) and the rest loan amount will be covered by the co-operative banks (20%).
Beneficiaries: According to the authorities, more than 17 Lac small and marginal farmers will get benefitted from the scheme. Those who have taken loans before 30^th June 2017 will be eligible for the scheme.
Important Dates: As said that the farmers will have to pay 50% of the loan amount first to enjoy interest free loan, the last date for repayment of the first instalment is 15^th June 2018. After this date, new loan with new credit limit will be released for these farmers.
Budget: Initially the state government of Madhya Pradesh has allocated Rs. 1000 Cr for the Loan Waiving Scheme. Currently the state has set a budget of Rs. 2600 Cr for the coming up plans under this scheme.

The state government is presently aiming at upgrading the agricultural sector by providing with resources and assistance to the state farmers. With this in mind the state government has also announced the implementation of new schemes for the agricultural sector.

Other Facilities

Along with loan waiving scheme the state government of Madhya Pradesh will also revise the bonus given to the farmers for different crops. For gram, mustard and lentils farmers will get Rs. 100/- bonus per quintal. For the paddy and wheat crops, they will get Rs. 200/- per quintal as bonus.
Also the state government will form new urban areas and Tehsils that will have 1 to 5 Lac populations. Each Tehsil will get Rs. 2 Cr for development, building and so on.

Apart from this loan waiving scheme, the state has taken few more initiatives to facilitate small farmers. It will lead to increasing the farmers’ income by 100% by the year 2022.

Krishi Rin Samadhan Farmer Loan Waiver Yojana Farmers Scheme (Kisan Karj Rahat) in MP