Assam Farmers Credit Subsidy and Interest Relief Scheme Details

Assam Farmers Credit Subsidy and Interest Relief Scheme Details

  1. Assam Farmers Scheme Plans
  2. Assam Farmers Credit subsidy Scheme (AFCSS)
  3. Assam Farmers Interest Relief Scheme (AFIRS)
  4. Features of AFCSS and AFIRS

Assam launches credit subsidy and interest relief scheme for farmers which are called as Assam Farmers Credit Linked Subsidy Scheme (AFCSS) and Assam Farmers Interest Relief Scheme (AFIRS). The cabinet committee of Assam state has previously approved Assam Farmer’s Credit Subsidy Scheme in the year 2018. Under AFCSS scheme assam government is taking an action once again to provide reimbursement of 25% of loans taken or repaid by farmers in the current financial year 2019. The limit for reimbursement amount is Rs. 25,000/-.

Govt taking several measures for economic & social development of farmers. The Chief Minister of Assam has launched this ACLSS scheme on Krishak Swahid Divas to honor the martyrdom of around 140 peasants who sacrificed their lives in 1894 protesting against increased land tax rate and other exploitation by British Raj. The state government of Assam is committed to the empowerment of the farming community, so they are launching the AFCSS scheme. He also handed over a cheque bearing the state government contribution to the scheme to the SBI so that the bank in turn can credit the subsidy to the beneficiary account.

Assam Farmers Scheme Plans

Assam Farmer Credit Subsidy Scheme is going to cover around 4 lakh farmers which will be implemented with an outlay of Rs. 500 crore. The Government was taking several measures for economic and social development of the farmers. Assam government is making elaborate plans for the growth of agriculture as this sector contributes around 19% of the states GDP. The farmers Credit Linked Subsidy Scheme has three different plans in it:

  • First plan is the Assam Farmers Credit subsidy Scheme (AFCSS) under which all short term crop loans taken from Scheduled Commercial Banks, Regional Rural Banks and the Assam Cooperative Apex Bank will be given at 25 per cent government subsidy for any loan availed between 1st April 2018 to 31st March 2019.
  • Second plan is under Assam Farmers Interest Relief Scheme  (AFIRS), farmers can avail short term crop loan up to Rs 2 lakh at zero per cent rate of interest in the state.
  • Third plan is that the scheme will provide a one time cash incentive up to Rs 10,000 per account for activating the overdue and NPA KCC account provided the account will turn into standard account.

Assam Farmers Credit subsidy Scheme (AFCSS)

Assam Farmers’ Credit Subsidy Scheme will pay back 25 percent of the loans taken or repaid by the farmers this economic year, subject to a maximum limit of Rs 25,000/- between 1st April 2018 to 31st March 2019. The scheme will cover around 4 lakh farmers of the Assam state and involve a monetary outgo of Rs 500 crore.

Assam Farmers Interest Relief Scheme (AFIRS)

Through Assam Farmers Interest Relief Scheme (AFIRS), government will extend support to farmers who are prompt in making repayment of their loans. It will provide 4% interest subvention on short term crop loans upto Rs. 2 lakh. AFIRS scheme would be aligned with the central government’s scheme in which prompt paying farmers gets 3% interest subvention in which the effective rate of interest for a cultivator in the state accessing short-term crop loan up to Rs 2 lakh will be 0.

Features of AFCSS and AFIRS

  • Under AGCSS the government will reimburse 25% of the loans taken or repaid by farmers with a limit of Rs 25,000/- in this financial year.
  • AGCSS scheme will cover 4 lakh farmers and involve a financial outgo of Rs 500 crore.
  • AFIRS will extend support to farmers who are prompt in repaying their loans, by providing a 4% interest subvention on short-term crop loans up to Rs 2 lakh.
  • AFIRS scheme will be aligned with the central government’s scheme under which prompt-paying farmers are given an interest subvention of 3%.
  • By AFIRS the effective rate of interest for a farmer in Assam accessing short-term crop loan up to Rs 2 lakh will be zero.
  • The Assam government is taking several measures for the economic and social development of farmers and was committed to empower the farming community.
  • These schemes are launched to help farmers to double their income by 2022.

The main objective of Assam government is to Double the Farmers Income by 2022 by these 2 schemes. CM also laid special emphasis on a team comprising of farmers, bankers and government representatives. This team would provide financial assistance and logistic support to farmers which would result in enhanced agricultural output and will also help the agriculture sector to increase its contribution in GDP.

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