Gujarat govt offers interest-free farm loans up to Rs 3 lakh ahead of polls

The move is likely to benefit 2.5 million farmers

With Gujarat polls around the corner and the Congress giving neck-to-neck competition to Bharatiya Janata Party (BJP), Chief Minister Vijay Rupani, on Monday, announced farm loans of up to Rs 3 lakh at zero per cent interest.

The move, aimed at wooing voters of rural Gujarat, is likely to benefit 2.5 million farmers.

Addressing the BJP workers at 'Gujarat Gaurav Sammelan', Rupani said that the seven per cent interest on loans will be borne by the state and Centre, the English daily added. 

The state’s exchequer will have to deal with an additional burden of Rs 700 crore per annum.

As reported earlier, Vijay Rupani also said the government would be setting up 16 new Gujarat Industrial Development Corporation (GIDC) industrial estates that would generate employment for 100,000. (Read more)

Gujarat government had also announced a cut in value-added tax (VAT) of four per cent on retail petrol and diesel prices.

Farm loan interest during Congress’ regime VS BJP’s

Launching a scathing attack on Congress, BJP President Amit Shah said from 16 per cent interest during Congress’ regime, Prime Minister Narendra Modi had brought farm loans interest to one per cent. 

Shah said with Rupani bringing it down to zero per cent, it shows that BJP is committed towards the development of the nation and not towards dynasty politics like its rival party.
 

Currently, Gujarat has a seven per cent interest on farm loans. While three per cent relief is given by the Centre, the other three per cent is provided by the state government. Therefore, the effective interest comes down to one per cent.