Shimla: In a major relief for distressed farmers, the Himachal Pradesh government has decided to bear 50 percent of the outstanding interest on overdue agricultural loans of up to Rs. 3 lakh per farmer under a new one-time settlement policy. The move is aimed at helping farmers whose land is at risk of being auctioned due to loan defaults.
The state government will launch the Agriculture Loan Interest Subvention Scheme, fulfilling a key announcement made in the state Budget. Around 6,356 farmers are expected to benefit from the initiative, for which the government has earmarked Rs. 50 crore.
The scheme will be implemented through the Himachal Pradesh State Cooperative Agriculture and Rural Development Bank and the Kangra Cooperative Agriculture and Rural Development Bank. Branches of the two banks will identify eligible borrowers and prepare the list of beneficiaries who qualify for the interest subvention.
Chief Minister Sukhvinder Singh Sukhu said that farmers are the backbone of Himachal Pradesh’s economy and their welfare remains the government’s top priority. He said many farmers have been facing financial hardships due to adverse circumstances, making it difficult for them to repay their loans. The government has therefore decided to extend one-time financial support to help such farmers.
The Chief Minister said the scheme is intended to assist farmers whose agricultural loans have turned overdue and whose land holdings are under the threat of auction by financial institutions. By paying half of the outstanding interest liability, the government aims to help farmers regularise their loans, reduce their financial burden and protect their agricultural land.
The initiative is expected to provide much-needed relief to small and marginal farmers struggling with mounting debt. Besides preventing distress auctions of farmland, the scheme is also aimed at enabling farmers to continue agricultural activities, maintain their livelihoods and improve access to institutional credit in the future.
