The Nitish government has announced major relief for farmers in Bihar.
This decision is expected to benefit lakhs of farmers across the state.
Under the new policy, farmers will now be able to avail agricultural loans at only 1 percent interest.
The move aims to reduce the financial burden on farmers and strengthen the rural economy.
Agriculture Department and NABARD Sign MoU
To implement the scheme, the Agriculture Department has signed a memorandum of understanding with NABARD.
The MoU was signed by NABARD Chief General Manager Gautam Kumar Singh and Agriculture Director Saurabh Suman Yadav.
With this agreement, the government has formally launched the additional interest subsidy scheme.
NABARD has been appointed as the state agency to ensure smooth and transparent implementation.
How the 1 Percent Interest Loan Scheme Will Work
Under the Nitish government’s plan, farmers will receive an extra 1 percent interest subsidy.
This subsidy will be provided in addition to the existing 3 percent interest subsidy.
The additional subsidy will be given from the state plan budget.
As a result, eligible farmers will effectively pay only 1 percent interest on loans.
Loans and Farmers Covered Under the Scheme
The benefit will apply to crop loans up to Rs 3 lakh.
It will cover loans taken from commercial banks, regional rural banks, and cooperative banks.
The scheme will also include Kisan Credit Card loans and short-term agricultural production loans.
Only farmers who repay their loans within the prescribed time will be eligible.
Budget Allocation for Financial Year 2025–26
For the financial year 2025–26, the Bihar government has allocated Rs 5 crore for the scheme.
The allocation highlights the government’s focus on farmer welfare.
Officials said the scheme aims to encourage farmers to take institutional loans.
The goal is to reduce dependence on private moneylenders.
Objective Behind the Farmer Relief Scheme
The state government aims to reduce the interest burden on agricultural loans.
Rising costs of seeds, fertilizers, irrigation, and machinery have increased pressure on farmers.
Low-interest loans will help farmers invest in modern farming practices.
This is expected to improve crop productivity and quality.
Statement from Agriculture Minister
Agriculture Minister Ram Kripal Yadav said the scheme will provide economic strength to farmers.
He stated that affordable credit will support sustainable agricultural growth.
According to him, the initiative will help farmers increase income and stability.
He added that the scheme reflects the government’s farmer-friendly policies.
Role of NABARD in Scheme Implementation
NABARD will play a key role in executing the scheme across Bihar.
The institution will coordinate with banks and government departments.
It will ensure timely release of interest subsidy to eligible farmers.
Officials believe NABARD’s involvement will ensure transparency and efficiency.
Boost to Agricultural Investment and Rural Economy
With cheaper loans, farmers can invest in better seeds and fertilizers.
They can also spend on irrigation facilities and farm mechanization.
This is expected to enhance agricultural output and farm income.
Experts say the scheme will strengthen Bihar’s rural economy.
Encouraging Institutional Credit Among Farmers
The government wants farmers to rely more on formal banking channels.
Institutional credit provides safer and regulated loan options.
Low-interest schemes reduce the risk of debt traps.
This move also supports financial inclusion in rural areas.
The 1 percent interest loan scheme is a major step for Bihar farmers.
It reflects the Nitish government’s commitment to agricultural development.
By easing credit costs, the policy supports farmer empowerment.
The initiative is expected to bring long-term benefits to Bihar’s farming sector.
