Indian Prime Minister Narendra Modi recently announced a ₹1 lakh crore agriculture infrastructure fund. It is launched to make 1 Indian farmers self-reliant. The objective of this fund is to provide facility of medium-long term debt financing to the farmers. The loan facility provided under this will be for post harvest management infrastructure like warehouse, silos, cold chains and e-marketing. The loan to be given has a limit of ₹2 crore and a subvention of 3% on interest will be given. The subvention will be given for a maximum period of 7 years.
It is a 4 year plan in which ₹10,000 crore will be given in this current financial year and ₹30,000 crore each will be give in in the next three financial years. All those banks and financial institutions who want to provide this facility to the farmers have to sign a MoU with Nabard and Department of Agriculture. All those providing this loan will be giving guarantee by the government that if there is any money which they won’t get back the government will return that money. this will be done through Credit Guarantee Fund Trust for Micro and Small Enterprises. This loan will be given under the already existing Union or State government schemes.
An online Management Information System will be created which will help monitor proper implementation. All those farmers or people related to agriculture who want to take a loan can apply online, does having transparency in interest rate get credit guarantee and also the information regarding all the documents required. This fund has been launched keeping in mind farmers welfare, with an aim to double farmers income and increase job opportunities in rural India.
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