Assam Zero Interest Crop Loan Scheme 2021 – 100% Interest Subsidy on Agricultural Loans for Farmers

Over the last couple of decades, governments have tried to go out of the way and help the deteriorating situation of farmers across the country. Agriculture is a pivotal aspect of the Indian economy which is primarily agrarian in nature. When the farmers suffer, the national economy on the whole suffers, and this is not a situation the government likes to be in. 

To bring respite to the farmers in the state of Assam, the state government of Assam has announced the Assam zero Interest crop loan scheme for 2021. 

About the Zero Interest crop loan

Farmers usually find their means of income to be sporadic and unpredictable in nature. This leads to uncertainty and we are all aware of how it impacts the proper functioning of a house and making ends meet. 

To enable farmers to keep their finances stable and to not pressure them under the crushing debt they manage to accrue over time, the state government of Assam announced the Zero Interest loan – an agricultural loan offered to farmers which would provide 100% subsidy to farmers. 

Generally, the more known outlook farmers hold regarding loans is that loans have higher interest margins which make matters worse. They, therefore, resort to financial solutions from local money lenders who often have nefarious intentions written in fine print, much to the dismay of uneducated farmers. 

With the implementation of zero-interest loans, more farmers in the state of Assam will now be encouraged to take loans and tend to their needs. 

Impact of the scheme

The total number of farmers said to benefit from the implementation of the scheme will be about 1,39,130 and this has enabled farmers to get credit for farming and also has provided 100% subsidy on loans. 

The implementation of the scheme brings about a paradigm shift in the psyche of farmers who will not refrain anymore from reaching out to banks for financial respite. 

It also, in the long run, encourages credit culture among farmers and this will further lead to the overall development of the state. To enable further development, the Assam state government has announced some more schemes to further the overall cause. 

Benefits of the scheme

  • The scheme will mainly benefit farmers from the state of Assam
  • The government of Assam has come up with this scheme for residents of Assam only
  • It is essentially meant to develop the farming sector in the state
  • It will also develop the Kisan Credit card system
  • It will work towards the overall financial development of farmers in the state. 

Eligibility criteria for the scheme

  • The applicant should be a permanent resident of Assam
  • The candidate should have his primary source of income from farming
  • All farmers are eligible to avail of the benefits of the scheme 

Summing it up

Farmers usually find it hard to get by, as weathers and fluctuating market prices take a direct toll on their income, and then there’s the pressure of paying loans back. Now, with the implementation of this scheme, farmers in Assam can breathe easy and pursue their activities without any financial sword looming over their heads.

Similar Yojanas

Schemes launched by the state government

The state governments of India are the next important government bodies right after the central government of the country. The state governments constitute 28 states and 8 union territories

India is a democratic and republic country wherein highest authorities and powers are proffered to the central government. For the state government, real executive powers are given to Chief Minister as he is responsible for heading the Council of Ministers. The state governments of India work toward internal security, such as police department, social welfare, public health betterment and other similar state-related issues. The state government of the country earns its employee income from sales tax services, stamp duty services, and from some parts of GST.

The state governments have launched a variety of schemes so far. Some of the examples are as follows:

In Andhra Pradesh, Chandranna Bima Yojana, National Energy Efficient Agriculture Pumps Program, and Smart Pulse Survey have been launched. In Assam, Mass Rapid Transit System has been recently launched. In Maharashtra, Police Pratisaad Ask services and various schemes for the betterment of farmers have been launched. In Karnataka, PM Santwana Harish Yojana, and Housing scheme for Transgenders have been launched. In Uttar Pradesh, Deen Dayal Upadhyay Gram Jyoti Yojana, Hausla Paushan scheme, and Swadhar Greh yojana have been launched.

The state government of India monitors both rural and urban development. However, it is not feasible for the state government to monitor all rural and urban local government bodies. Thus, based on the provided funding and coverage, rural and urban local entities create development plan whenever required. These government entities work in close association with planning commission and local or regional government sectors and authorities.

Apart from these schemes, the state government also ensures the effective implementation of centrally sponsored schemes in respective states.