Good News: 36,351 Farmers to Get Interest Waiver, Eligible for New Loans

Key Highlights

• 36,351 farmers will get a 100% interest waiver on old loans.

• Farmers need to repay only the principal amount.

• The government allocated ₹200 crore for loan interest waiver.

• The scheme applies to loans from Land Development Banks.

• Farmers can apply till March 31, 2025.

The state government has announced a major relief for farmers under the Ek Musht Samjhauta Yojana (One-Time Settlement Scheme). This scheme aims to waive the interest on old loans taken by 36,351 farmers. With this, farmers who were declared defaulters due to non-payment of loans can now become eligible for fresh loans from banks.

Also Read: Pradhan Mantri Fasal Bima Yojana: Rs 2595 Crore Released, Compensation Soon

What is the One-Time Settlement Scheme?

The One-Time Settlement (OTS) Scheme is introduced to provide financial relief to farmers. Under this scheme:

• Farmers who repay 100% of the principal amount of their medium-term and long-term loans (overdue as of July 1, 2024) will get a 100% waiver on interest.

• The scheme applies to loans taken from Land Development Banks.

• The government has allocated ₹200 crore to compensate banks and facilitate the waiver.

• The total outstanding loan amount is ₹760 crore.

Who Will Benefit from This Scheme?

According to the Cooperative Minister, many farmers have been unable to repay loans due to natural disasters. As a result, their loans have accumulated, worsening the financial condition of banks. With this initiative, banks can recover their principal amounts, and farmers can restart their financial journey without the burden of interest.

100% Interest Waiver for Farmers

The government’s Suraj Sankalp initiative ensures that farmer's land will not be auctioned due to loan defaults. Land Development Banks have also postponed recovery auctions. Farmers were expecting such a scheme, and now, with its implementation, they will get relief from overdue interest.

Also Read: MP Budget 2025: Tractor Subsidy and Other Benefits for Farmers

New Loan Facility for Farmers

Once the OTS scheme is implemented, farmers will be eligible to take new loans under the 5% interest subsidy scheme for agricultural and non-agricultural activities. This will help them improve their livelihood and financial stability.

How to Avail the One-Time Settlement Scheme?

If you are a farmer in Rajasthan, you can apply for this scheme. Follow these steps:

1. Visit your nearest Land Development Bank or related financial institution.

2. Inquire about the terms and conditions of the OTS scheme.

3. Apply as per the prescribed procedure.

4. The last date to avail of this scheme is March 31, 2025.

Eligible Banks and Financial Institutions

The scheme applies to loans taken from the following institutions:

• Land Development Banks

• State Cooperative Agriculture and Rural Development Bank

• Regional Rural Banks

• State Cooperative Bank

• District Central Cooperative Bank

• Commercial Banks

• State Agricultural Development Finance Companies

• Scheduled Primary Urban Cooperative Banks

• North-East Development Finance Corporation

• Non-Banking Finance Companies (NBFCs), including Micro Finance Institutions and Small Finance Banks

This scheme is a great opportunity for farmers to clear their financial dues and get fresh loans for agricultural development. If you are a farmer with an outstanding loan, make sure to check your eligibility and apply before the deadline.

Also Read: Apply for PM Awas Yojana from Home and Get Rs 1,20,000 Subsidy

CMV360 says

The Ek Musht Samjhauta Yojana is a significant government initiative to support farmers struggling with loan repayments. By waiving interest and allowing new loans at a subsidized rate, this scheme ensures financial stability for 36,351 farmers. Eligible farmers should take advantage of this scheme before March 31, 2025, to secure their agricultural future.