Farmer of our country depends on nature so it is not a profitable work in our country. To provide financially help state government of Rajasthan has started Rajasthan Interest-Free Farm Loan Scheme. Under the scheme, the state government will provide agriculture loan without any interest. The scheme was announced on the occasion of Global Rajasthan Agritech Meet in Udaipur. The state government of Rajasthan and Federation of Indian Chambers of Commerce and Industries jointly organized the Global Rajasthan Agritech Meet.
Under the Rajasthan Interest-Free Farm Loan Scheme, the state government of Rajasthan will provide Rs 75,000 crore as an interest-free loan to the farmers within next one and half year. The government has already provided Rs 55,000 crore interest-free loan in the last three years. After the announcement of the scheme the Land Development Bank and Co-operative banks also reducing the interest rate on farm loans.
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The state government of Rajasthan will also provide insurance cover of Rs 6 lakh to the farmers of the state. The insurance cover will be given by the Cooperative sector Bima Yojana. The farmers have to give only Rs 27.50 per annum for the insurance cover under cooperative sector Bima Yojana while the insurance premium amount is Rs 55 per annum rest amount will be given by the District co-operative bank to the insurance company. The insurance cover will be increased up to Rs 10 in future earlier the insurance cover was Rs 50,000 only.
The scheme has some term and condition if the farmers cannot pay within the specified time that the farmers have to pay the minimum interest rate which is now 6.7 percent. Borrowers have to pay the loan in time for avoiding the penalty interest rate. The state government of Rajasthan also provide 50 percent subsidy for the setting of processing unit related to agriculture sector up to 20 lakhs.