Saturday, June 3, 2023

PM-Kisan update: Govt scheme offers up to Rs 2 crore loan for farmers; know details

In order to boost agricultural infrastructure for post-harvest management of crops announced the formation of the Rs 1-lakh crore Agriculture Infrastructure Fund (AIF) on May 15, 2020.
The government created the AIF to support Primary Agricultural Cooperative Societies, Farmers Producer Organizations, Agriculture entrepreneurs, startups to set up businesses in the sector.

The Central Sector scheme listed under PM-Kisan programme, is aimed at mobilising medium-long term debt financing facility for investment in viable projects relating to post-harvest management Infrastructure and community farming assets through incentives and financial support.
AIF was launched on July 8, 2020 for creation of post-harvest management infrastructure and community farm assets, with benefits including 3% interest subvention and credit guarantee support. All loans under this financing facility will have interest subvention of 3% per annum up to a limit of Rs. 2 crore. This subvention will be available for a maximum period of 7 years. In case of loans beyond Rs.2 crore, then interest subvention will be limited up to 2 crore. The extent and percentage of funding to private entrepreneurs out of the total financing.
Credit guarantee coverage will be available for eligible borrowers from this financing facility under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme for a loan up to Rs. 2 crore. The fee for this coverage will be paid by the Government. In case of FPOs the credit guarantee may be availed from the facility created under FPO promotion scheme of DACFW.
Projects covered by the AIF scheme
The loans under the AIF scheme will be given on post-harvest management projects such as Supply chain services including e-marketing platforms, Warehouses, Silos, Pack houses, Assaying units, Sorting & grading units, Cold chains, Logistics facilities, Primary processing centers, Ripening Chambers, Organic inputs production, Bio stimulant production units, Infrastructure for smart and precision agriculture, Projects identified for providing supply chain infrastructure for clusters of crops including export clusters, Projects promoted by Central/State/Local Governments or their agencies under PPP for building community farming assets or post harvest management projects.
Who is eligible?
Rs. 1 Lakh Crore to be provided by banks and financial institutions as loans to Primary Agricultural Credit Societies (PACS), Marketing Cooperative Societies, Farmer Producers Organizations (FPOs), Self Help Group (SHG), Farmers, Joint Liability Groups (JLG), Multipurpose Cooperative Societies, Agri-entrepreneurs, Startups and Central/State agency or Local Body sponsored Public Private Partnership Projects. PACS who have adopted digitization for handling its operations will be given preference under this scheme.
Lending institutions will decide criteria for selection of eligible borrower in consultation with NABARD and monitoring committees, PMUs and keeping in mind the viability of the projects and to avoid bad loans.

Note: The information given here is based on religious belief and public belief. There cannot be any scientific evidence for this. Keeping in mind the general interest and knowledge, it is being presented here.

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