Dr. Panjabrao Deshmukh interest rebate scheme

This scheme was implemented from 01.04.1990 under the name “Crop Production Incentive Scheme,” as per Government Resolution No. CCR 1491/Pr.Kr.714/2-S, dated 02.11.1991. The objective of the scheme is to encourage timely repayment of crop loans by providing incentive subsidies to farmers.

If a farmer repays their entire short-term crop loan before June 30 each year, they are eligible for an interest subsidy from the government. As per the Government Resolution dated 11.06.2021, an interest subsidy at the rate of 3% has been approved for crop loans up to ₹3 lakh.

Further, under Section 79(A) of the law, the Government issued directions on 18.06.2007 to District Central Cooperative Banks and Development Institutions that if a farmer repays their crop loan in full before June 30 every year, only the principal amount should be collected from such farmers, and the interest amount should be claimed from the Government.

If farmers repay their crop loans within the prescribed period, they are eligible for benefits under both the Central Government scheme and this scheme, effectively making crop loans up to ₹3 lakh interest-free.

For the financial year 2024–25, benefits amounting to ₹300 crore have been distributed to 9.38 lakh beneficiary farmers under this scheme.

Beneficiary:

Farmers

Benefits:

As mentioned above