Vaddi Leni Runalu (Interest-Free Crop Loan Scheme)

Why it matters

Farmers repaying their crop loans on time get the interest portion waived or reimbursed by the state, making short-term farm credit effectively interest-free.

What you get

Vaddi Leni Runalu ("Interest-Free Loans") is a Telangana state sector scheme under which the government reimburses the interest component on short-term crop loans taken by farmers from cooperative banks and other notified lending institutions, provided the loan is repaid within the stipulated period (typically one year). This works alongside the related Pavala Vaddi scheme (a reduced/subsidized interest rate facility for women SHG and farmer borrowers) to substantially lower the effective cost of formal agricultural credit, encouraging farmers to borrow from regulated banking channels rather than informal high-interest moneylenders, and rewarding timely repayment discipline that keeps the cooperative credit cycle healthy for the next season's borrowers.

Eligibility criteria

• Must be a farmer who has taken a short-term crop loan from a cooperative bank or notified lending institution in Telangana
• Loan must be repaid within the prescribed time period (typically within one year) to qualify for full interest waiver/reimbursement
• Available to crop loans up to the notified ceiling amount per the scheme guidelines

How to apply

1. 1

   Take a short-term crop (Kharif/Rabi) loan from your local cooperative bank or eligible lending institution

2. 2

   Repay the loan in full within the stipulated time period

3. 3

   Interest waiver/reimbursement is applied/credited automatically by the bank under the scheme on confirmed timely repayment

Documents required

• Aadhaar card
• Land records
• Loan account/passbook
• Bank account details