gujarat zero-interest loan scheme 2022 for farmers, farm loans at 0% interest rate, check latest update on short term crop loan repayment from cooperative banks, central and state governments give 3% and 4% interest subsidy to farmers who repay their crop loans on time or before the loan period of one year, complete details here 2021

Gujarat Zero Interest Loan Scheme 2022

Latest Update: The Gujarat government has extended the deadline for repayment of short-term crop loans in view of the ongoing COVID-19 pandemic outbreak in the state. The state government also announced to pay the central government interest component on behalf of farmers for delayed payments.

Gujarat Zero Interest Loan Scheme for farmers has been started by the state government. Under 0% interest farmer loan scheme, the Gujarat state government will provide agriculture loans at 0% interest rate. Under the scheme, farmers of the state will be given loans up to Rs 3 lakh.

The state government will provide agricultural loans up to Rs 3 lakh at an effective 0% interest rate. Co-operative banks provide loans to farmers at a 7% interest rate. Of this interest rate component, 4% is borne by the state and 3% by the central government to bring down the effective interest rate to zero. Now the state government will also pay the 3% interest component of the central government.

Interest Component on Zero Interest Farmer Loan Scheme

Based on the Gujarat Zero Interest Loan Scheme, the state government will have to bear the additional burden otherwise payable by the farmers. Co-operative banks in Gujarat charge 7% interest on advance crop loans to farmers from April to July every year. Central and state governments provide 3% and 4% interest subvention respectively to farmers who repay their crop loans on time or before the loan tenure of one year.

Chief Minister Vijay Rupani has decided to extend the crop loan repayment deadline for the benefit of farmers. Gujarat government will also pay a 3% interest subvention announced by the central government and a 4% interest subvention announced by the state government to the farmers coming under the cooperative credit system. Thus, the Gujarat government will pay a total interest subvention of 7%.

The benefit of Interest Subvention by the Gujarat Government

Those farmers who default on their loan repayment date become ineligible to get the benefit of the 3% interest subvention given by the central government, now such farmers will not have to pay any interest on their crop loan as the state government interest subvention The chip will be attached to the component. The central government also. The state government will bear the entire 7% interest subvention amount and farmers will not have to pay any interest amount.

Gujarat zero interest agriculture loan scheme launched for farmers

Zero-interest loan scheme for farmers was first announced by the state government on 16 October 2017 at Gujarat Gaurav Mahasammelan in Gandhinagar. The Gujarat Zero Interest Kisan Loan Scheme aims at providing agricultural loans at concessional interest rates and the state government has issued detailed guidelines regarding its implementation.

After its implementation, Gujarat Zero Interest Loan Scheme is proving to be very helpful for the farmers of the state. This scheme will further reduce the interest burden on the farmers and help them to increase their income and ultimately income and standard of living.