Gruhalaxmi Crop Loan Scheme In Karnataka For Farmers 2019-20

 

Gruhalaxmi Crop Loan Scheme In Karnataka For Farmers 2019-20

Farmers often need financial assistance for maintaining the standing crop or during harvest. If they don’t have the money, then they opt for credits. There are two possible sources for agricultural loan – first are the financial institutes, and the second is the money lenders. In both these cases, the farmers will have to shell out a heavy penny as interest rate. The implementation of the Gruhalaxmi Crop Loan Scheme will come as a relief for interest burdened agricultural workers. The state government has decided that the creditors will attain loan at very low interest rates. To know more about the features, eligibility and documents necessary for application, read this article. Here, you will also attain preliminary information about the application procedure.

Launch details

Name of the schemeGruhalaxmi Crop Loan Scheme
Launched inKarnataka
Launched byCM Kumaraswamy
Date of announcementFebruary 2019
Date of implementation2019 – 2020
Target beneficiariesPoor farmers of the state

Gruhalaxmi Crop Loan Scheme In Karnataka For Farmers

Key features of the Gruhalaxmi Crop Loan Scheme

  1. Development of agro sector – The scheme has been designed with the development of the farmers in mind. When they have to worry about lower interest payment, they will be able to concentrate on farming activities.
  2. Low interest rate for farmers – The scheme highlights that in current times, 9% is the lowest interest rate that any farmer needs to pay as agricultural loan interest. With the implementation of this scheme, the state authority will reduce it to 3% only.
  3. Collateral for loan – The scheme will also make the availability of agricultural credit easy. While taking the loan, farmers will have to keep their ornaments at a security. Once the loan repayment is over, the authority will return those ornaments.
  4. Account based payment – It is mandatory for the farmers to have a bank account. The credit money will be transferred in the respective account.

Eligibility and documents necessary for application

  1. Residential requirement – The state government will allocate a huge sum for the better implementation of this project. Thus, it will allow the participation of agricultural workers, who live in the state legally. Submission of the legal residential certificates is a must for attaining the perk under this scheme.
  2. For farmers only – The scheme highlights that only registered and full-time farmers will be allowed to apply for the perks of this scheme.
  3. Loan taken for agriculture – The low interest rate benefit will only be available to those agricultural workers who have attained the credit for agricultural usage. If case the money has been spent on something else, then they will not get the facility.
  4. Personal ID proof – All interested farmers will have to attach their personal identification documents. The Aadhar card, voter card and the ration card are some of the legal personal ID documents, which will be considered by the authority.
  5. Bank account details – It is mandatory for all agricultural workers to submit their bank account details. Thus, applicants have to highlight the name of the bank and the respective branch, branch code, IFSC code, account number and branch address, while filling in the application form.

How to get registration form and apply for the benefits?

The minister just made the announcement about the implementation of the faring loan rate scheme in Karnataka state budget 2019 – 2020. The authority is working its best to pave the path for an actual implementation soon. So, it has not divulged registration process and implementation strategy related details. It will take some time to work out these details. It is expected that these announcements will be made soon. Stay hooked on this site for all government policy related details. We will upload application form and procedure related details as soon as the government releases the memo.

Multiple agricultural labor deaths take place in the country either due to crop failure or inability to pay for the interest rates. The high crop interest rates put tremendous burden on the shoulders of the poor farmers. As the state depends on its agricultural produce, it is mandatory for the government to come up with new schemes, which will help the farmers. Lowering the farm loan interest rate is one of the best steps that the authority has taken. Sudden death of the any agricultural worker leaves the family in a state of financial crisis. To avert this situation, the state government will be offering life insurance coverage for all eligible farmers. It will meet the financial requirements of their families. Additionally, it will also offer subsidy to those business ventures, which are related to one form of agriculture or another.

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