Bihar Boosts Farmer Loans with Additional Interest Subvention

The Bihar government has signed an MoU with NABARD to provide an extra 1% interest subvention on agricultural loans for farmers under the Kisan Credit Card scheme for FY 2025-26. This aims to enhance institutional lending and boost agricultural productivity.

The Bihar government has struck a new deal with the National Bank for Agriculture and Rural Development (NABARD). A memorandum of understanding was signed on Friday to offer an additional one per cent interest subvention on agricultural loans to farmers under the Kisan Credit Card scheme for the financial year 2025-26.

The agreement was finalized in the presence of Bihar's Agriculture Minister, Ram Kripal Yadav, between the agriculture department and NABARD. Under this agreement, the state will provide extra financial relief to farmers, supplementing the 3 per cent interest subvention already offered by the Union government.

According to official statements, the initiative is designed to encourage timely loan repayment, boost investment in agriculture, and increase farm productivity and incomes. For FY 2025-26, the state has allocated Rs 5 crore for the additional subvention.

(With inputs from agencies.)