Updated on: December 19th, 2019 5:00 PM

Karnataka Gruhalaxmi Crop Loan Scheme

The Government of Karnataka has launched a new scheme entitled “Gruhalaxmi Crop Loan Scheme” for the farmers in the state. This scheme was announced during the State Budget 2019-20. Under this scheme, the farmers are provided with loans at very low interest rates on the mortgage of ornaments. In this article, we look at the Gruhalaxmi Crop Loan Scheme in detail.

Features of the Scheme

The below following are the key features of the Karnataka Gruhalaxmi Crop Loan Scheme:

• The needy farmers can easily get loans for their agriculture.
• The farmers can avail the soft crops loans for their agriculture at 3% interest rate for which the farmers will have to mortgage their ornaments or jewellery like gold, silver, platinum etc.
• This scheme has been implemented by the State Government to overcome the financial crisis of the farmers who are under Economically Weaker Section.
• This scheme also ensures to improve the financial conditions of farmers to bring stability in their livelihood.
• Collateral for loan – The scheme will also make the availability of agricultural credit easy. While taking the loan, farmers will have to keep their ornaments as security. Once the loan repayment is over, the authority will return those ornaments.
• It is mandatory that the framers must have a bank account.
• The Bank branch will directly transfer the amount of subsidy to the farmer's account.

Note: The Aadhaar number of the farmer should have been linked with the bank account for receiving the loan amount.

Eligibility Criteria

The farmer applicant must satisfy the below criteria to apply for the  Gruhalaxmi Crop Loan Scheme:

• Farmer applicant must be a resident of Karnataka State.
• Farmer card to show that the applicant is an active farmer.
• Farmer should have ornaments and be ready to mortgage the ornaments like gold, silver, platinum etc.

Documents Required

The following documents are needed for registration to this scheme:

• Identity Proof: PAN, Aadhaar Card, Driving License, Voter Identity Card, etc.
• Address Proof: PAN Card, Valid Passport, Utility bill,
• Bank account details.
• One passport size photo of the applicant.
• Signature verification of applicants and guarantor
• Details of existing loans and repayment track records

Implementation of the Scheme

Upon the implementation Karnataka Gruhalaxmi Crop Loan Scheme, the farmers will be getting a better life to become financially self-dependent. This scheme would work towards the development of the farmers both in the urban and rural areas.

Application Procedure

Karnataka Gruhalaxmi Crop Loan Scheme can be applied by filling up the applications along with the information of the persons who are ready to avail the benefits of this scheme. The online application procedure for this scheme will be intimated in the official portal by the government. The Karnataka Government is more likely to opt for an online application process for the ease of the applicants.