Interest Subsidy on Loans for Agriculture and Allied Activities

Why it matters

Farmers who borrow from a bank for farming and repay on time get back a chunk of the interest they paid, making loans much cheaper.

What you get

Under this scheme, the Goa government reimburses an interest subsidy of up to 4% (or the difference between the lending rate and 4%, subject to a notified cap) to farmers who avail short-term or long-term agricultural and allied-activity loans from eligible banks and repay them promptly. By lowering the effective cost of formal credit, the scheme encourages farmers to invest in inputs, equipment, and allied enterprises like dairy or poultry through regulated lending channels rather than informal credit.

Eligibility criteria

• Must have availed an agriculture or allied-activity loan from an eligible bank/cooperative institution in Goa
• Loan instalments must be repaid on or before the due date to qualify for the interest subsidy
• Loan purpose must fall under recognised agriculture or allied activities (crop production, dairy, poultry, fisheries, etc.)

How to apply

1. 1

   Avail an agriculture/allied-activity loan from an eligible bank or cooperative society

2. 2

   Repay loan instalments on time as per the sanctioned schedule

3. 3

   Bank certifies timely repayment and forwards the interest-subsidy claim to the Directorate of Agriculture

4. 4

   Approved interest subsidy amount is credited to the farmer's loan account or bank account

Documents required

• Aadhaar card
• Loan sanction letter and repayment statement from the bank
• Bank passbook