Apply for Krishi Rin Samadhan Farmer Loan Yojana in MP

Krishi Rin Samadhan Farmer Loan (Kisan Karj Rahat)Yojana in MP Apply 

Madhya Pradesh farmers have always protested against the huge interest rate while taking a loan and to resolve the issue the Madhya Pradesh government has launched Krishi Rin Samadhan Yojana which is also known as Madhya Pradesh Loan Waiver Scheme. This scheme will basically work as a loan waiver scheme for the farmers of Madhya Pradesh and it will also offer them an interest subsidy to help them with their bank loans. The Madhya Pradesh government is expecting that this scheme will be a long term solution to end the protests of the MP farmers. They can also avail Mudra Loan which is a subsided loan scheme from central government.

Krishi Rin Samadhan Yojana in MP

Launch Date

Name Krishi Rin Samadhan Yojana
Announced By Chitnis A. (State Minister)
Launched By Mr. Shivraj Singh (Chief Minister of MP)
Launched On 7 June, 2017
Target Audience Madhya Pradesh Farmers
Budget 2600 Crore
State Madhya Pradesh
Supervised By Maharashtra Government

Key Features in Krishi Rin Samadhan Yojana in MP

  • Aim – This scheme has been launched to ensure agricultural development in the state and this scheme will boost the morale of the farmers as it will work as a loan waiver and this scheme will also ease off the burden from the shoulders of the farmers.
  • Beneficiary – Only the farmers of Madhya Pradesh will be eligible for this scheme and among the farmers only those will be helped who were unable to pay their part time loan (defaulters) by 30th June, 2017. These farmers will be helped by the scheme and they will be provided with a debt relief.
  • Installment details – The farmers will now be able to pay their debts to their respective banks in two equal installments under the scheme. This rule will be only applicable to those farmers, who have failed to pay their loans before 30 June, 2017. The farmers will be able to pay 50 percent of their loans before 15 June, 2018 and they will have the ability to pay the rest of it later.
  • The farmers will also be presented with a wonderful opportunity as the loan interest will be waived off after the payment of first installation. Also changes will be made in the credit limit before FY 2018. Also the farmers will not have to worry about the remaining principal amount of loan as all of it will be covered under the no interest system of the scheme.
  • This scheme will also benefit 17.78 lakh farmers of Madhya Pradesh and will ensure agricultural development in the state. This scheme will waive off the interest in the bank loans availed by the farmers and subsequently it will ensure that the farmers are happy and doing their job actively.
  • Defaulter’s farmers – Not only this scheme will waive off the loans but also it will ensure that the farmers are able to get loans from different banks and institutions. This scheme will ensure that the defaulter’s farmers are able to easily get loan from banks. This scheme will lower the interest rate so that the farmers are able to get their loans at a low interest.
  • Earlier, the farmers were bound to pay back a huge sum of loan within a short period of time and thus the farmers always protested about their miserable condition. This scheme will work as a long-term solution as it will offer the farmers a more relaxed system in term of loan.
  • Department – The government has created a new department to monitor and supervise this scheme and this department will also calculate the total production cost of the state and it will also calculate the profit of the farmers. Thus this department will help the farmers to earn more profit and it will also ensure that no farmers are deprived.
  • This scheme has a long term goal of developing and improving the condition of agriculture in the state and it will mainly focus on ensuring more profit for farmers and doubling their income within the next 4 years.
  • Nearly 22 districts have already started implementing the scheme. According to the reports in major centres the purchase of crops at MSP has been successfully done.
  • Also the state government has planned to start a mobile application for the same in future. This app will help the farmers to get maximum information about the market or mandis where they can sell their products at declared prices.
  • According to the authority, this scheme will also provide one time annual loans as per requirement. Adding to this, the authority assured that the loaners do not need to opt for crop insurance scheme.

Budget Allocation by MP government

The state government has allocated a huge sum of 2600 crore INR for the financing of this scheme and the government will also provide interest subsidy to the farmers.  80 percent of the funding will be provided by the government while 20 percent of it will be provided by the co-op banks of the state. Farmers should also opt for Fasal Bima Yojana from central government.


Apply and Eligibility

Apart from launching this scheme for the farmers, the MP government also promises to give away Rs. 1 Cr to the family of each deceased farmer and Rs. 5 Lac for the farmers who are being critically injured. No official statement have been given on the process to apply. All farmers should be eligible for this scheme.

Other Important Decisions of MP Government

  • Madhya Pradesh government will provide a bonus of 100 INR on gram, lentils and mustard crops to the farmers under Krishak Samriddhi Yojana and this scheme will function along with the loan waiver scheme.
  • The state cabinet of Madhya Pradesh will also provide the bonus of previous years. The government will provide INR 200 per quintal to the farmers as a bonus. The government will also provide bonuses for paddy and wheat crops to the farmers and the bonuses will be deposited to the account of the farmers on 16 April and 10 June, 2018.
  • Also, the government is looking forward to create 43 Tehsils in the state in these tehsils will be created in 30 urban areas and all the Tehsils will be provided a sum of 2 crore INR for construction purposes. Also a tehsildar and deputy tehsildar will be appointed to monitor the Tehsils. The government will also provide a vehicle to all the tehsils and will provide assistants to be in charge of them.
  • The Madhya Pradesh government is also looking forward to bring in an innovative change in the state as they will launch the Mukhyamantri Kalyani Sahayata Yojana in the state. This scheme will be launched to help the widows of the state and the government will provide 2 lakh INR on the remarriage of the widows. Also, this scheme will cover all the widows in the Maharashtra state and the government will also give them 300 INR per month as pension. If any widow is aged above 79, they will get 500 INR per month from the government.

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