By Admin 
Short Term Crop Loan Scheme: To save farmers from losses in farming, governments keep taking new steps to reduce the debt burden. In this series, Mohan Yadav government of Madhya Pradesh has made a very wonderful and big relief announcement for the farmers of the state. The government has made a major change in the rules for short term crop loans available at zero percent interest rate.
Now the farmers of the state will not have to pay even a single rupee interest on taking loans up to Rs 3 lakh for the cost of farming. The government has not only given relief in interest but has also made the process of taking and repaying the loan simpler than before. Small, marginal and big farmers will all benefit from this. Know the complete news.
Interest will not have to be paid on loans up to Rs 3 lakh
Now under the new system in Madhya Pradesh, farmers will get relief in interest on crop loan or Kisan Credit Card limit up to Rs 3 lakh. Apart from the interest subsidy provided by the Central Government, the State Government will also provide separate interest subsidy. If farmers repay the entire loan within the stipulated time, no interest will be charged on them.
That means, farmers who pay on time will get the benefit of zero interest crop loan. Under this new limit, farmers will be able to easily get cash as well as things like fertilizers and seeds required for farming on loan. Apart from this, now farmers will get full time of 12 months to repay the loan. So that they can easily make payment by selling the crop.
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Those who repay their loan on time will get these benefits
The government has also strengthened the system of subsidy on interest to motivate the farmers to repay the loan on time. Farmers taking loans will be given a simple interest subsidy of 1.25 percent by the government. Along with this, the farmers who will repay their loan in full within the stipulated time limit.
The government will also give them a separate incentive interest subsidy of 4 percent. By combining all these concessions and subsidies, the effective interest rate for farmers will become zero percent. With this decision of the government, lakhs of farmers of the state will get freedom from the clutches of moneylenders and private lenders with high interest rates.
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