Himachal Pradesh launches interest subvention scheme for defaulted farm loans
In a major relief measure for farmers facing financial distress, the Himachal Pradesh government has decided to launch the 'Agriculture Loan Interest Subvention Scheme' under a one-time settlement policy, fulfilling a key budget announcement. The scheme aims to prevent auction of agricultural land due to loan defaults.
A government spokesperson stated that the initiative will assist farmers by covering 50% of the outstanding interest liability on agricultural loans up to Rs 3 lakh per farmer. An estimated 6,356 farmers across the state are expected to benefit, with a financial outlay of Rs 50 crore.
Implementation through cooperative banks
The scheme will be implemented through the Himachal Pradesh State Cooperative Agriculture and Rural Development Bank and the Kangra Cooperative Agriculture and Rural Development Bank. Concerned branches have been directed to identify and prepare a list of eligible borrowers for the interest subvention benefit.
CM Sukhu emphasises farmer welfare
Chief Minister Sukhvinder Singh Sukhu said that farmers are the backbone of the state's economy and their welfare remains the government's foremost priority. “Many farmers have been facing financial challenges due to adverse circumstances, and the government has therefore decided to extend this one-time support to eligible beneficiaries,” he said. “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 the fear of losing their land.”
