Assam Zero Interest Crop Loan Scheme 2021 – Agricultural Loans Upto Rs. 2 Lakh at 0% Interest Rate

The state government of Assam has launched a new Zero Interest Crop Loan Scheme 2021 for the farmers in budget. In this scheme, the state govt. will provide 100% interest subsidy on agricultural loans for short term crops. Now farmers can avail a crop loan of up to Rs. 2 Lakh at 0% interest rates. Through the Zero Interest Crop Loan Scheme, the state government aims to encourage the farmers to avail loans against the backdrop of low credit flow in the state.

Assam Zero Interest Crop Loan Scheme Latest Update

Assam govt. has followed a multi-pronged approach for the development of formal agrarian credit. One major scheme in this regard has been the introduction of 100% interest subvention on agricultural loans on select short term crops up to a maximum of Rs. 2 lakh. CM take immense pride in informing the Assembly that 10,06,305 farmers with a cumulative total loan value of Rs. 5,978.73 crore have benefitted from this scheme. (*** Data is as on 12 February 2021).

What is Assam Zero Interest Crop Loan Scheme 2021

Under Assam Zero Interest Crop Loan Scheme, the state government would offer 100% subvention on interest of crop loans of upto Rs. 2 Lakh thus bringing the payable interest rate to zero. The 0 Interest Farm Loan Scheme aims to encourage the financial inclusion and increase the scope of expansion of credit flow to rural areas, particularly to the farmers. Zero Interest Crop Loans is possibly first such transformative intervention to drive agricultural loans and uplift rural economy.

This would be the first of its kind of agriculture loan scheme in the country which will offer 100% subsidy on the interest rates of loans. The state government has earmarked Rs. 25 Crore for this scheme for the current financial year.

Assam Govt Schemes for Rural Development in Budget

Assam being primarily an agrarian economy, primacy of the rural economy and development of the agriculture sector is central to uplifting people out of poverty. One of the key enablers for driving the growth in this sector is the expansion of low cost institutional credit in parallel with the development of other necessary infrastructure.

Assam Farmers Credit Subsidy Scheme (AFCSS)

Under AFCSS, Assam government decided to deposit 25% of the total amount repaid by the farmers or Rs. 25,000, whichever was less, per such account. A total of 1,39,130 farmers benefitted under the Assam Farmers Credit Subsidy Scheme. The state govt. has already released an amount of Rs. 164 crore for AFCSS Assam. This ambitious scheme has enabled farmers to access institutional credit all over Assam by de-clogging the credit flow. Also, this scheme has even upped the credit culture amongst the farmers.

Financial Incentives For Farmers Using Kisan Credit Card (KCC)

With a view to steer the growth of formal credit in the rural economy, Assam government initiated the activation of the hitherto inactive Kisan Credit Cards. To facilitate this process, a one-time cash incentive of Rs. 10,000 was given to each farmer for renewing their inactive Kisan Credit Cards. As a result, today the state boasts of having 11,82,640 active Kisan Credit Cards with a total outlay of Rs. 48.16 crore in the form of one time incentives which has been received by our farmers in the year 2018-19.

Assam Government Schemes 2021Popular Schemes in Assam:Assam Atal Amrit AbhiyanAssam Chief Minister Krishi Sa Sajuli YojanaAssam Sarothi Start Up Fund Loan Scheme

Chief Minister’s Samagra Gramya Unnayan Yojana

Chief Minister’s Samagra Gramya Unnayan Yojana is one of the most ambitious multi-sectoral schemes of our Government which aims to double our farmers’ income within a period of 5 years. For this, a mega mission society was convened with a governing council chaired by our Hon’ble Chief Minister. For the benefit of our Agriculture sector, under the Chief Minister’s Samagra Gramya Unnayan Yojana, Assam govt. distributed 9,135 Tractors with a total expenditure of Rs. 454.53 crore.

For the financial upliftment of the youths of our State and to make them self employed, Assam govt., through the ‘Ghare Ghare Pukhuri Ghare Ghare Maach’ scheme under the Fisheries vertical of the Chief Minister’s Samagra Gramya Unnayan Yojana, provided training to beneficiaries and in parallel distributed Rs.60 lakh to them to initiate them into pisciculture as a means of livelihood.

Further under this Scheme, govt. has developed 444 sports fields in the rural hinterland of our state with a total outlay of Rs. 66 crore.

In the Veterinary sector, govt. have launched several projects like special intervention for livelihood and employment generation for youths in livestock sector in Bokakhat LAC, Sootea LAC, Jalukbari LAC and Majuli LAC. Similarly, govt. has launched an integrated dairy value chain in Sitajakhala dairy cluster in Morigaon District. A special mention should also be made here of the Mini milk processing plant and other activities under Kannayeka Bohumukhi Pam, Jamuguri hat in Sonitpur District which is truly revolutionizing the rural economy of our state.

Assam Adarsh ​​Gram Yojana

Assam govt. had also announced another important scheme, namely Assam Adarsh Gram Yojana, to transform rural Assam. Although this scheme could not take off due to the CAA protests followed by the Covid-19 crisis, govt. has already made the financial resources for implementation of this scheme with the field level functionary. With the support of our Hon’ble MLAs and the Deputy Commissioners, Assam govt. will implement this scheme in the years to come.

Efforts to strengthen the Gaon Panchayats

While our government has taken significant steps for increasing the human resources available at Gaon Panchayat level, we are also working towards increasing public participation in the development process. As a part of this, we intend to set up Farmers Clubs, Mahila Clubs and Sports Clubs at each Gaon Panchayat. Going forward, each Panchayat would also have a library with reading room and computer facilities. This would create appropriate environment for our rural youths to prepare themselves for their lives and careers ahead.

Check more details through the official website of Finance Ministry of website or through

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