India Region

Farmers to Get 3% Interest Rebate on Agriculture Loans for Seven Years

04 February 2025, Bhopal: Under the Agriculture Infrastructure Fund (AIF) scheme of the Central Government, farmers will receive a 3% interest rebate on loans up to ₹2 crore for developing agricultural infrastructure. This benefit will be available for a maximum of seven years, allowing farmers to invest in essential facilities such as warehouses, cold storage, processing units, and smart farming technologies. The initiative aims to enhance agricultural productivity, reduce post-harvest losses, and strengthen the rural economy.

According to government data, Madhya Pradesh has been allotted a target of ₹7,440 crore under this scheme by 2025-26. So far, 10,860 cases worth ₹7,804 crore have been approved, making it the highest in the country. Additionally, ₹5,978 crore has already been disbursed across 10,047 cases, surpassing allocations in other states. For the financial year 2024-25, the Central Government had initially set a ₹500 crore target for Madhya Pradesh. However, the state far exceeded expectations, with 2,152 cases worth ₹1,240 crore approved—248% of the original target. So far, ₹721 crore has been disbursed in 1,745 cases.

Madhya Pradesh has been recognized for its successful implementation of the AIF scheme, receiving awards for its performance in 2021-22, 2022-23, and 2023-24. However, the specific name of the award has not been mentioned in the released data.

The AIF scheme is designed to support the construction and development of key agricultural infrastructure. Farmers can use the financial assistance to build warehouses, silos, cold storage units, sorting and grading facilities, primary processing units, as well as advanced farming setups like aeroponics, hydroponics, vertical farming, and mushroom production. These developments are expected to help farmers minimize post-harvest losses, store their produce efficiently, and gain better market prices.

With the interest subsidy, small and medium farmers will be able to establish modern storage and processing facilities at a lower cost. The government believes that this initiative will play a crucial role in reducing agricultural wastage and increasing farmers’ incomes, ultimately contributing to a stronger and more resilient agricultural sector in India.

Also Read: Budget 2025: A Boost for Farmers, but GST on Inputs Needs Revision – Dr. R.G. Agarwal

Please reach out at info@krishakjagat.orgnimishgangrade@krishakjagat.org if you would like to share your company story or advertise in the upcoming issue of Global Agriculture magazine.

(For Latest Agriculture News & Updates, follow Krishak Jagat on Google News)
(+80 Million Farming Audience Visits Krishak Jagat’s Hindi Website – Click Here for Website)