1. Key Features of the Scheme
- Eligibility: Short-term loans of up to ₹3 lakh for agriculture and allied activities.
- Concessional Rate: Farmers can avail loans at a concessional interest rate of 7%.
- Timely Repayment Benefit: An additional 3% interest subvention for farmers who repay on time, reducing the effective interest rate to 4%.
2. Supported Activities
- Short-Term Crop Loans: Priority for interest subvention and prompt repayment incentives.
- Allied Activities: Includes animal husbandry, dairy, fisheries, beekeeping, etc.
3. Additional Support for Farmers
- Post-Harvest Storage: Small and marginal farmers can benefit from the interest subvention for up to six months post-harvest.
- Natural Calamities Relief: Special interest rates on restructured loans for the first year for farmers affected by natural calamities.
4. Terms for Lending Institutions
- Interest Subvention Rate: 1.5% for lending institutions in the financial year 2024-25.
- Aadhaar Linkage: Mandatory for availing benefits under the scheme, ensuring a hassle-free process.
5. Key Takeaways
- Encourages timely repayment with reduced interest rates.
- Supports diversified farming activities and post-harvest storage.
- Provides a safety net for farmers impacted by natural disasters.