Tamil Nadu announces Rs 1 lakh subsidised loan for small and marginal farmers

Subsidized loan schemes are being implemented for small and marginal farmers to create irrigation facilities. 50% to 70% subsidy is provided. 

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Schemes for farmers

Agriculture is crucial for a nation's economy, food security, and social welfare. It provides basic food needs. In countries like India, agriculture provides employment and contributes to economic growth. It also earns foreign exchange through exports.

Agriculture improves the livelihood of rural people and reduces urban migration. Agriculture is the backbone of Tamil Nadu's economy, providing employment and contributing significantly to the state's GDP.

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Loan assistance for farmers

Governments are implementing various schemes for small and marginal farmers, including subsidized loans for irrigation. Financial assistance is provided for purchasing pump sets, motors, pipelines, borewells, drip irrigation, and sprinkler irrigation equipment. A bank loan with a 50% subsidy is provided for constructing borewells.

In Tamil Nadu, there is a 70% subsidy and 30% farmer contribution for setting up solar-powered pump sets. One key scheme provides subsidized loans for irrigation to small and marginal farmers, with a 50% subsidy up to Rs.1,00,000, implemented by the Tamil Nadu government and the Central government's Department of Agriculture.

One such scheme is offered through the Tamil Nadu Backward Classes Economic Development Corporation (TABCEDCO).

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Key features of the loan scheme

Subsidized loans are provided to small and marginal farmers for improving irrigation facilities, including borewells, motors, pipelines, and drip irrigation systems. This scheme helps increase agricultural productivity and uplift the livelihood of economically weaker farmers.

Eligibility: Backward Classes, Most Backward Classes, Scheduled Tribes, and economically weaker small and marginal farmers with less than 2.5 acres of wetland or 5 acres of dry land (small farmers) or less than 1.25 acres of wetland or 2.5 acres of dry land (marginal farmers).

Applicants must have a Small and Marginal Farmer Certificate issued by the Tahsildar. Loan and Subsidy Details: Up to Rs.1,00,000 with a 50% government subsidy (up to Rs.50,000). Low-interest rate loan with a repayment period of generally 5 years.

Usage: New borewells, electric motors, pump sets, pipelines, drip irrigation systems, and solar-powered pump sets.

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Documents required to apply

Income proof, caste certificate (for BC/MBC/DNC categories), bank account details, 2 passport-size photos, land documents (Patta, Chitta, Adangal, Field Map), identity proof (Aadhaar card, Voter ID), and project estimate for borewell or other irrigation equipment.

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How to apply

Apply through the TABCEDCO district office, the Department of Agricultural Engineering or Horticulture district office, or the agricultural section in the District Collector's office.

Get the application form from the TABCEDCO website (www.tabcedco.com) or the district office. Submit the completed application with documents. After verification and eligibility confirmation, the loan will be approved through the bank, and the subsidy will be directly credited to the farmer's bank account.