The State Government Of Maharashtra Has Abolished Interest On Crop Loans Up To Rs 3 Lakh

The Maharashtra government abolished crop loans interest up to Rs 3 lakh

The Maharashtra government announced on Thursday that farmers who repay agricultural loans of up to Rs 3 lakh regularly will be charged 0% interest. A decision to this effect was made at a cabinet meeting here, presided over by chief minister Uddhav Thackeray. Previously, there was a 1% interest rate reduction if the crop loan was between Rs 1 lakh and Rs 2 lakh.

The state government of Maharashtra has abolished interest on crop loans up to Rs 3 lakh

According to a statement from the chief minister’s office (CMO), the concession has now been raised by 2% (to a total of 3%, which has been waived). The cabinet decision, made at the start of the Kharif season, waives 3% interest on crop loans up to Rs 3 lakh and makes them interest-free since the Centre has also eliminated a 3% charge on similar loans.

Farmers who repay their loan interest of up to Rs 3 lakh receive interest subsidy under the Dr Punjabrao Deshmukh crop interest subsidy plan. Previously, there was a 3% interest subsidy on loans up to Rs 1 lakh and a 3% interest subsidy on loans between Rs 1 lakh and Rs 3 lakh. According to the CMO announcement, there will now be an additional 2% concession if crop loans of up to Rs 3 lakh is returned on time.

The national government also offers a 3% discount on agricultural loans up to Rs 3 lakh if returned on time. As a result, farmers will receive a 6% discount and will be able to return their short-term crop loans at a 0% interest rate, according to the statement. Another decision made by the cabinet was to adopt a plan to save mangroves and coral reefs through the Green Climate Fund. The project will be carried out in 11 talukas of four coastal districts.

The programme would encompass the talukas of Devgad, Malvan, Vengurla (Sindhudurg district), Dapoli, Guhaghar, Rajapur, Ratnagiri (Ratnagiri district), Shrivardhan, Alibag (Raigad district), and Palghar, Dahanu (Palghar district).

The initiative, which aims to improve climate resilience in India’s coastal communities, is being carried out in Maharashtra, Andhra Pradesh, and Odisha with financial support from the United Nations Development Programme and the Green Climate Fund.

In Maharashtra, it was first carried out in the Sindhudurg district as the state’s financial share in the project would be Rs 140.90 crore till December 31, 2025.

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