The central government is running many schemes for the progress of farmers and to increase their income. It has schemes like PM-Kisan Samman Nidhi along with crop insurance. Along with the Kisan Credit Card, they are also given concessional rate loans.
Now the government has brought a scheme to give loans to farmers without any guarantee – e-Kisan Upaj Nidhi. It was launched on Monday by Food and Consumer Affairs Minister Piyush Goyal. Let us know what this scheme is and how it can be availed.
You will get a loan without any hassle
The objective of e-Kisan Upaj Nidhi is to make farming a profitable deal. Under this scheme, farmers will be able to take loans by keeping their crops in warehouses registered with the Warehousing Development and Regulatory Authority (WDRA). They will be able to easily get a loan at 7 percent interest without any separate guarantee i.e. mortgage.
Option to choose amount and interest also
While launching the scheme, Union Minister Piyush Goyal said that the banks associated with this digital platform will also give the farmers the option to choose the loan amount and interest rate. At present about 5,500 warehouses are registered with WDRA. At the same time, the number of warehouses related to agriculture is one lakh. Goyal said the security amount charged from warehouse owners will also be reduced from three percent of the stock value to one percent.
The compulsion to sell produce at low prices ends
Farmers are often forced to sell their produce at throwaway prices due to lack of proper storage arrangements. Many times they need money for sowing new crops. Hence, they are forced to sell their produce at lower prices.
E-Kisan Upaj Nidhi will solve both their problems of storage and the immediate need for money. They will be able to take loans by keeping their produce in the warehouse. And then when they get a good price, they will be able to easily repay their loan by selling the crop.
Initiative to provide MSP through technology
With e-Kisan Upaj Nidhi and e-National Agriculture Market (e-NAM), farmers will be able to access an inter-connected market technology, where they will have the option to sell their produce at MSP or above. The central government claims that government procurement through MSP has increased 2.5 times in the last decade.
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