Krishak Udhyami Loan Yojana (Farmers Entrepreneur in MP)

 

Krishak Udhyami Loan Yojana (Farmers Entrepreneur in MP)

Krishak Udhyami Yojana is yet another step towards facilitating the farmers of the nation. The Madhya Pradesh state government has recently announced about this new scheme where children of the farmers will get the benefit of loans.

Krishak Udhyami Loan Yojana Farmers Entrepreneur in MP

Launch Details

The scheme was announced by the chief minister of Madhya Pradesh, Shree Shivraj Singh. He has announced this scheme on 13th of August 2017 in his maiden show Dil se. According to the scheme it will be supervised by the state government. There will be government centres and offices that will conduct the scheme in grass root level.

Aim of the Scheme

The backbone of Indian economy that is farmers are suffering from heavy burden of loans in many parts of the nation. This scheme will not only be helpful for them to reduce the burden of loan amount, also it will be a great assistance for the next generation of the farmers as well.

Key Features

  • Under Krishak Udhyami Yojana, the next generation of the farmers will get the benefits. Adult sons and the daughters will get loan facility to enhance the current position of farmers.
  • Some of the selective banks will be enlisted under Krishak Udhyami Yojana. These banks will provide the loan amount to the applicants. Also the repayment process will be done through the banks.
  • There will also be interest relaxation on the loan amount. That is beneficiaries will get interest subsidy on loan amount. They may not need to pay at market interest rate.
  • The loan amount will be provided to establish agricultural processing units by the sons and daughters of the farmers. In these process units the farmers can cut, clean and process their produced items.

Eligibility

  • The candidate whoever is applying for the scheme has to belong to a farmers’ family. That is the beneficiary must be the son or daughter of the farmer.
  • The applicant must be the citizen of the state. Any migrant or farmers who don’t have voting rights in Madhya Pradesh will not be eligible for the scheme.
  • The candidates have to be above 18 years of age. If there is a minor, he / she will not be eligible for the scheme or loan. The beneficiary will have to be responsible to start his / her business.

Loan Criteria

  • The minimum loan amount that to be released under this scheme will be Rs. 10 Lac. According to Mr. Singh the beneficiary can get maximum of Rs. 2 Cr as loan.
  • The entire loan amount can be received from the nearby banks that are listed under the scheme. Not all the banks will be eligible for the scheme. There will be some selective banks.
  • As mentioned before the loan will be granted to establish the custom processing units across the state. Under this units farmers can clean, grade and process their produced goods within no time.
  • Under this scheme it is expected to open nearly 1000 processing units across the state in the first phase of the scheme.

Interest Rates

  • Beneficiaries will get interest relaxation as well. For the lower amount of loans 15% interest rate grant will be given by the state government. For the higher amount of loan it will be 5%.
  • Apart from the mentioned rates, another 40% interest grant will be given on Rs. 25 Lac loan amount. This will be a major step towards benefitting the farmers and their families.

Loan Repayment

The time span for the loan repayment is 5 years. That is within 5 years the beneficiaries have to repay the loan amount including the interest payments.

Registration Process

Registration process will be done through online and offline mode. As of now neither of the modes has been announced by the authority. Banks will help the beneficiaries to register under the scheme.

The scheme will be a major step towards the development of agricultural sector, especially the standard of living of the farmers. In his 40 minutes long show, Singh has stated that with this scheme the production process will be better and faster. This will lead to better price of the finished produce and also much lesser migration from rural to urban areas will take place.

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