The Bhajanlal Sharma-led Rajasthan government has taken a major step to provide relief to farmers and small entrepreneurs through long-term loans via cooperative land development banks under interest subsidy schemes. A target of Rs 130 crore has been set for loan distribution through 36 primary cooperative land development banks.

Farmers to Receive Long-Term Loans

State Minister of Cooperation, Gautam Kumar Dak, issued a statement saying that farmers and small entrepreneurs across all districts of the state will now be able to access long-term agricultural and non-agricultural loans through cooperative land development banks. He added that the State Land Development Bank has assigned a target of Rs 130 crore for long-term loan distribution through 36 primary cooperative land development banks in the state.

The minister further explained that these loans will be provided under the state’s budget announcement, with an interest subsidy of 7% and 5%. He noted that due to a lack of refinancing from NABARD, many land development banks had been unable to distribute loans under these schemes for some time. However, with NABARD recently resuming refinancing and the NCDC (National Cooperative Development Corporation) reducing interest rates, loan distribution is now feasible.

Interest Subsidy Available

Dak said that due to the state government’s interest subsidy, long-term agricultural loans distributed by land development banks will be available at an interest rate of just 5.05%, while long-term non-agricultural productive loans will be available at 7.05%. Additionally, a loan distribution target has been set for about 15 primary cooperative land development banks that have not been issuing long-term loans for the past 5-6 years. These banks include those in Ajmer, Kekri, Tonk, Hindaun, Sawai Madhopur, Jalore, Pali, Sirohi, Baran, Bundi, Jhalawar, Kota, Banswara, Dungarpur, and Udaipur.

This initiative is expected to be a significant step toward reviving the state’s long-term cooperative credit structure.