Farmers To Get Loans Of Up To ₹6 Lakh For A Long Term At Six Percent Interest

Lucknow: A decision has been taken to provide long-term loans to small and marginal farmers at concessional interest rates under the Chief Minister Farmer Prosperity Scheme. The decision was taken in the Cabinet meeting held on Tuesday under the chairmanship of Chief Minister Yogi Adityanath.

Finance and Parliamentary Affairs Minister Suresh Kumar Khanna said that through the Uttar Pradesh Cooperative Village Development Bank Limited, farmers will be provided loans of up to Rs 6 lakh for a long term at an annual interest rate of six percent. This will enable farmers to obtain financial assistance at a lower interest rate for agricultural and rural needs.

For providing long-term loans, the State Government will grant a 5 percent interest subsidy on loans disbursed to farmers. This will be assessed every year on the basis of the outstanding principal amount of loans provided to farmers during the previous year (after commencement of the scheme) and the loans disbursed in the subsequent years. Under the proposed scheme, the 5 percent interest subsidy payable will be admissible only to those borrower farmers who pay their due instalments on the prescribed due date.