Agriculture is one of the main sources of income for farmers, and through that, they get the majority of their income, which helps them to meet their livelihood needs. However, in the agri sector, there have been numerous troubles over the past decades, as it has shown that many farmers lost money in farming.
However, the authorities in recent times are accepting the fact that the rural economy is something that needs to be catered to. It’s that part of the country which can generate exports for the country and that will lower the fiscal deposit of the nation.
Now, to increase agricultural output, several agri-loan schemes have been introduced that will help shape the impact of agriculture in our nation. In this blog, we will discuss some of the schemes the government has introduced and how they can benefit the country’s agriculture industries.
- Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)
PM-KISAN is a tool through which one can take a loan, as it’s a government loan program. Through this loan, the government aims to assist small and marginal farmers. It’s critical support that serves as assistance for the farmers during dry years or heavy monsoons.
There are DSA apps in India where agents who work in rural areas will help a farmer get these loans. These loans can provide financial assistance in times of need. Here, one can apply for this direct support of ₹ 6000 per year. Through this assistance, one can buy better seeds, and a marginal farmer can again sow seeds for next year’s season of cultivation.
- Kisan Credit Card (KCC)
The role of the credit card is to provide an adequate fund to the farmers that they can use for their short-term needs. Here, a person can avail of a crop loan through a credit card and get the necessary items with that credit card.
In the KCC, one can get the chance to buy agro-related activities, and through that, one can make purchases and through that, one can choose the valuable tools which can make the farming process efficient. Here, the farmer can make the payments in 60 days, which is interest-free, and after that, one can pay less interest in the repayment.
- Rashtriya Krishi Vikas Yojana (RKVY)
RKVY is a central scheme, and through that, an entrepreneur can start producing in the allied sector of agriculture. It’s through the use of agricultural products that one can make the development infrastructure and get agricultural products.
It provides the funds for the equipment and that will help the farmers with the right tool. It’s also helpful for Agri entrepreneurs to start a business around agriculture or to do the right research and development.
It’s te long-term projects of the central where the funds are provided to the entrepreneurs who can introduce new and productive methods of investing in agriculture and will teach the farmers the modern methods of farming.
- National Agricultural Insurance Scheme (NAIS)
NAIS is a scheme by the government that allows farmers to mitigate the risks of crop failures due to natural calamities or unforeseen events. Here, the farmers can insure the profits from the crops at an affordable insurance rate, which can provide compensation for any crop failure.
Here, a farmer then has the substantial fund which either they get from the insurance company or the loan agency by taking the farmer’s loan and then foreclosing it after receiving the insurance. NAIS offers farmers the right resources which encourages them to sow seeds in the next crop cycle.
- Interest Subvention Scheme for Short-Term Crop
It’s a kind of scheme where a farmer will get a subsidy at their interest rate after closing their short-term farmer’s loan on time, and that helps them to get capital at the bare minimum cost, which will improve the condition of the farmer.
The interest subvention scheme encourages the farmers to make timely repayments and again take the loans and build a strong credit score, which will allow them to use the loans at a cheap rate thus increasing their agricultural produce.
Through the availability of funds from government schemes and lower-interest loans from small finance banks, a farmer can get a livelihood in the rural part of the country and contribute greatly to the economy.
