Himachal govt to bear 50% interest burden on overdue agricultural loans

In a major relief to farmers facing financial distress, the Himachal Pradesh government has decided to launch the Agriculture Loan Interest Subvention Scheme under the one-time settlement policy, fulfilling a key budget announcement of the state government.

The scheme would provide assistance to farmers whose agricultural land is at risk of auction due to loan defaults. Under this farmer-centric initiative, the government would bear 50 per cent of the outstanding interest liability on agricultural loans up to ₹3 lakh per farmer, a statement issued here on Saturday said.

An estimated 6,356 farmers across the state are expected to benefit from the scheme, with a financial outlay of ₹50 crore.

 

The scheme would be implemented through the Himachal Pradesh State Cooperative Agriculture and Rural Development Bank and the Kangra Cooperative Agriculture and Rural Development Bank. The concerned branches will identify and prepare the list of eligible borrowers for availing the benefit of interest subvention.

Chief Minister Sukhvinder Singh Sukhu said that farmers were the backbone of the State's economy and their welfare remains the government's foremost priority. He said that many farmers have been facing financial challenges due to adverse circumstances and the government therefore decided to extend this one-time support to eligible beneficiaries.

The scheme would cover farmers whose agricultural loans have become overdue and whose land holdings are under the threat of auction by financial institutions. By sharing half of the outstanding interest burden, the government aims to facilitate loan regularisation, ease financial stress and enable farmers to continue their agricultural activities without fear of losing their land.

He directed the concerned departments and financial institutions to ensure the expeditious implementation of the scheme so that deserving farmers receive timely assistance.