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Farmers can get loans up to 70% of their produce cost

By Faisal Malik, Mumbai
PUBLISHED ON MAY 28, 2020 11:57 PM IST

To provide relief to distressed farmers, the state government has launched a mortgage loan scheme against their farm produce. The new scheme allows a farmer to stock his produce at the godown of the Maharashtra State Warehousing Corporation (MSWC) and get up to 70% amount of total cost of the produce as a mortgage loan.

The corporation will also provide the warehouse to store the stock at half the prices. The farmers can take benefit of the scheme if they are not getting a proper price for their produce or facing any other difficulty in selling their stock.

Currently, under the scheme, the loan will be provided by the Maharashtra State Cooperative (MSC) Bank.

State cooperation minister Balasaheb Patil said that the scheme has been formalised keeping in mind the difficulties being faced by the farmers. The scheme allows to safely store their stock until they get a proper price to sell and prepare for the next season.

“We are starting this scheme for three months on a pilot basis and based on the response, we might extend it to other banks,” said Patil.

The application for the scheme has been made online so that farmers don’t have to go to the bank. A facility has been created through which the application for the mortgage loan can be made through the online system of MSWC, based on the receipt issued against the stock. “The state has also prepared a mobile application through which loan application can be given,” said the cooperation minister.

“They will get the loan at an interest rate of 9% only. The state has also put a cap of Rs 5 lakh on the mortgage loan,” he added.

Farmers will be free to sell their produce anytime they want.

“The only condition is that they have to clear the principal loan amount along with the interest,” said a senior official from cooperation department.

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