Agriculture loan interest subvention scheme in Himachal Pradesh targets farmer loan defaults under OTS

The Himachal Pradesh government has cleared a new Agriculture Loan Interest Subvention Scheme under a one-time settlement policy. The move targets farmers in financial trouble whose land faces auction due to unpaid farm loans. The government plans to pay 50 per cent of the outstanding interest on agricultural loans, up to Rs 3 lakh per farmer.

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An official statement issued on Saturday said the plan will support farmers with overdue agricultural borrowings. The scheme is expected to reach 6,356 farmers across the state. The total budget for the measure is Rs 50 crore. The support focuses on interest dues, which often block borrowers from regularising loans.

Agriculture Loan Interest Subvention Scheme: Coverage and relief

The scheme applies where agricultural loans have turned overdue and land holdings face auction by financial institutions. By covering half the pending interest, the state aims to help borrowers make repayments and bring accounts back on track. Officials said this should reduce financial strain and allow farmers to continue farming without the risk of losing land.

Agriculture Loan Interest Subvention Scheme: Banks and beneficiary identification

Implementation will run through the Himachal Pradesh State Cooperative Agriculture and Rural Development Bank and the Kangra Cooperative Agriculture and Rural Development Bank. Branches of the two institutions will identify eligible borrowers and prepare lists for the interest subvention benefit. This process is meant to ensure support reaches farmers covered under the one-time settlement framework.

Agriculture Loan Interest Subvention Scheme: Government directions and timeline

Chief Minister Sukhvinder Singh Sukhu said that farmers were the backbone of the States economy and their welfare remains the governments foremost priority. The Chief Minister said many farmers were under pressure due to adverse circumstances. The state decided to provide this one-time help to eligible beneficiaries facing loan-related stress.

The Chief Minister directed concerned departments and financial institutions to implement the scheme quickly. The government said timely action is important so eligible farmers receive support before auction proceedings advance. With interest relief capped at loans up to Rs 3 lakh per farmer, the measure is designed to offer targeted assistance within the Rs 50 crore outlay.

With inputs from PTI