Cooperative Farmer Welfare Scheme

The Cooperative Farmer Welfare Scheme provides farmers with term loans of up to ₹10 lakhs through central cooperative banks. Under this scheme, a maximum loan limit of ₹2.5 lakhs can be approved for a one-year term, either as a term loan or as a credit limit. The credit limit can be renewed annually based on transactions in the account. For farmers with un-irrigated land, loans of up to ₹50,000 can be provided, and for those with irrigated land, loans of up to ₹1 lakh can be granted. The scheme aims to support various agricultural activities, including mechanization, irrigation, horticulture, dairy development, and storage of fodder against agricultural produce.

• Term loans up to ₹10 lakhs
• Working capital limit up to ₹2.5 lakhs
• Loans against pledge of agricultural produce up to 70% of the value pledged
• Interest subsidy of 2% on timely repayment of term loans

Farmers residing in the operational area of the relevant central cooperative bank, who own agricultural land free of encumbrances and cultivate it themselves. The farmer must be a member of a cooperative society or the relevant central cooperative bank.

No grants are provided by the Government of India under this scheme. Only the state government offers an interest subsidy.

Online

Applicants must submit a loan application on plain paper, detailing the purpose and necessity of the loan, along with necessary documents such as land ownership proof, membership details, and a guarantee letter, to the central cooperative bank or village service cooperative society. Applications can be made at PACS/LEMPs and branches of central cooperative banks.