India Region

Haryana is not charging interest on loans taken from cooperative societies

06 June 2023, Chandigarh: The Manohar Lal-led Haryana government has time and again reiterated its commitment towards farmers welfare. Several farmers friendly policies and schemes have been implemented by the State Government in the interest of the farmers.

The system of providing easy loans to farmers through the Primary Agricultural Cooperative Societies (PACS) of Haryana will continue to be the same, no change has been made in this system.

In some PACS of the state, the farmers have deposited the loan money with interest, the state government has issued orders to those PACS to deposit the interest amount charged from the farmers back into their accounts, because there is no valid reason to charge interest from the farmers. It is further clarified that the decision of charging interest has not been issued by the government.

Sharing more details in this regard, an official spokesman said that interest-free loans up to Rs 1.50 lakh are given to farmers through PACS. These PACS provide loans of about Rs. 6000 crore to the farmers every year. Due to which the farmers get a lot of help in meeting the expenses related to agriculture.

The spokesperson said that loans are made available by the PACS not only to the farmers but also to those farmers who do farming on the land taken on contract.

Notably, at present there are 751 cooperative societies in Haryana, through which loans have been given to 12 lakh farmers of the state, out of which about six lakh farmers are doing timely repayment transactions. The state government does not charge interest on this loan given to the farmers, rather it is an interest-free loan. This time some farmers who have taken loans through these PACS had deposited the loan amount along with the interest in the banks.

The spokesperson further informed that in this regard, a letter has been issued by the state government to all the PACS, directing that the decision to collect interest from the farmers has not been taken by the state government, so the farmers who have deposited the amount of loan along with the interest should be immediately deposited to their accounts.

The PACS provides interest-free loans to farmers and 4 percent of the interest on the loan is borne by the Haryana government and 3 percent by the Central government.

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