Relief for Farmers: Interest-Free Crop Loan Repayment Deadline Extended


By Robin Kumar Attri

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The state government has extended the crop loan repayment deadline, benefiting 2.19 lakh farmers. Avoid penalties and get interest-free loans for Kharif 2025.

Key Highlights

The state government has provided major relief to farmers by extending the last date for depositing the short-term interest-free crop loan distributed in Kharif 2024. This decision aims to support over 2.19 lakh farmers, helping them repay their loans without any financial burden. The Finance Department has also approved this extension, ensuring that eligible farmers continue to benefit from the interest subsidy scheme for Kharif 2025.

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New Deadline for Loan Repayment

Farmers who availed loans for Kharif 2024 through Primary Agricultural Credit Societies (PACS) or Large Area Multi-Purpose Societies (LAMPS) from Central Cooperative Banks can now deposit the loan amount by June 30, 2025, or within 12 months from the loan disbursal date, whichever is earlier. Initially, the deadline was set for March 31, 2025, but following demands from farmers, the government has extended the repayment period.

Avoiding Financial Losses and Penalties

Without this extension, around Rs 778 crore in loans would have become overdue, affecting 2.19 lakh farmers. This would have prevented them from availing future interest-free loans and incurred a 2% penalty on overdue amounts. The extension allows farmers to repay their outstanding loans smoothly and avoid additional charges.

Understanding the Interest-Free Crop Loan Scheme

The Rajasthan government provides interest-free crop loans to farmers before the Rabi and Kharif seasons. Farmers only need to repay the principal amount within the stipulated period. This scheme ensures financial support for purchasing seeds, fertilizers, and pesticides without additional interest costs. However, failure to repay on time results in interest and penalties as per the bank's rules.

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Preparation for Kharif 2025 Loan Distribution

With the Rabi season ending, preparations for Kharif 2025 crop loans have begun. The Cooperative Department will distribute interest-free loans to around 30 lakh farmers through Gram Seva Cooperative Societies. District-wise cooperative banks will enroll new members and disburse loans based on government guidelines. The interest cost will be shared, with 3% borne by the Central Government and 4% by the State Government.

How to Apply for a Kharif Season Loan

Farmers can apply for short-term crop loans at cooperative banks and village service cooperative societies. New members must submit land records (Jamabandi), a bank passbook, and a Jan Aadhaar card. Existing members with pending loans must clear their dues before applying, as defaulters are ineligible for new loans.

Banks Offering Interest-Free Crop Loans in Rajasthan

Several cooperative banks provide interest-free crop loans, including:

Additionally, other cooperative banks involved in agricultural financing include:

For districts like Dholpur, Karauli, Pratapgarh, and Rajsamand, cooperative banking services are managed by Bharatpur, Sawai Madhopur, Udaipur, and Chittorgarh Central Cooperative Banks, respectively.

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CMV360 Says

This extension offers significant relief, ensuring farmers can repay loans on time and continue benefiting from interest-free credit for upcoming seasons. It also prevents financial stress, supports agricultural productivity, and helps farmers maintain eligibility for future government schemes and loans.