Zero Percent Interest Farmer Loan in India – Get up to Rs. 2 Lakh Easily

Zero Percent Interest Farmer Loan in India – Get up to Rs. 2 Lakh Easily

The Government of Karnataka has introduced a special financial support scheme to help farmers improve their agricultural and allied activities. Under this program, farmers can now get up to Rs. 2,00,000 loan at zero percent interest through their nearest Agricultural Credit Cooperative Society (PACS).

This scheme aims to support farmers involved in activities like dairy farming, cattle rearing, goat and sheep farming, and fish farming, allowing them to grow their income without worrying about high interest payments.

Overview of the Zero Percent Interest Loan Scheme

The Zero Interest Farm Loan Scheme is part of the State Agricultural Credit and Cooperative System. It provides short-term agricultural loans and livestock-related loans to eligible farmers at a 0% interest rate if repayment is made within the stipulated period.

The scheme has been designed to promote financial inclusion among small and marginal farmers who depend on seasonal income. The loan amount can be used for various agricultural purposes such as buying livestock, farm machinery, seeds, fertilizers, or developing fish ponds.

Key Features of the Scheme

1. Farmers can borrow up to Rs. 2 lakh at 0% interest.
2. The loan is available through Agricultural Credit Cooperative Societies (PACS) or District Central Cooperative Banks (DCCBs).
3. The zero-interest benefit is applicable only if the farmer repays the loan within the prescribed period (usually 12 months).
4. The loan can be used for various agricultural and allied activities such as dairy, poultry, fisheries, and animal husbandry.
5. In case of delayed repayment, the regular bank interest rate will be charged.

Eligibility Criteria

To apply for this zero percent interest loan, farmers must meet the following eligibility conditions:

1. The applicant must be a resident farmer of Karnataka.
2. The applicant should be a member of a registered cooperative society or PACS.
3. The applicant must possess agricultural land or be actively engaged in livestock or fish farming.
4. The farmer must have a valid Aadhaar-linked bank account.
5. The applicant should have a clean repayment record if they have taken any previous agricultural loans.

Documents Required

Applicants need to provide the following documents while applying for the zero percent interest loan:

1. Aadhaar Card – Identity and address proof
2. Voter ID or PAN Card – Additional ID proof
3. Land Ownership Documents (RTC/Pahani) – Proof of agricultural land or tenancy
4. Passport-size Photographs – Recent color photos
5. Bank Passbook Copy – Account details for loan disbursal
6. Income Certificate – Proof of income from farming
7. Livestock or Fish Farming Plan – If applying for animal husbandry or fishery loan
8. Project Estimate or Quotation – For purchase of animals or equipment

In some cases, applicants may also be asked to submit a no-dues certificate from their existing cooperative society.

Purpose of the Loan

The zero percent interest loan is not just for crop cultivation. It is also intended to support rural entrepreneurship and diversification of agricultural activities. The funds can be used for:

• Cattle, goat, or sheep farming
• Dairy development and milk production
• Fish pond setup and maintenance
• Poultry farming
• Agricultural equipment purchase
• Organic fertilizer or seed purchase
• Crop improvement and irrigation systems

How to Apply for the Loan

Farmers can apply for this scheme both offline and through their cooperative society. Here is the detailed process:

Step 1: Visit the Nearest Cooperative Society

Go to your nearest Primary Agricultural Credit Cooperative Society (PACS) or District Central Cooperative Bank (DCCB). The officials will guide you through the loan application process.

Step 2: Collect and Fill the Application Form

Ask for the Zero Percent Interest Agricultural Loan Form. Fill in your personal, banking, and agricultural details carefully.

Step 3: Attach the Required Documents

Attach copies of your Aadhaar card, bank passbook, land documents, and other supporting papers listed above.

Step 4: Submit the Application

Submit the form along with your documents to the branch officer or society head. They will verify your eligibility and forward the form for approval.

Step 5: Loan Sanction and Disbursal

After verification, the approved loan amount will be credited directly to your registered bank account. The repayment period and schedule will be explained during the sanction process.

Loan Repayment and Interest Subsidy

The farmer must repay the loan amount within the specified period (generally 12 months) to enjoy the zero percent interest benefit. If the payment is delayed, the normal rate of interest will be charged.

Farmers who repay the loan on time are also eligible for additional incentives or subsidies provided under the State Agricultural Loan Interest Subsidy Scheme.

Benefits of the Scheme

• Easy access to short-term capital for agricultural needs
• Zero percent interest for timely repayment
• Encourages livestock and fish farming to boost rural income
• Strengthens local cooperative credit systems
• Reduces dependence on private moneylenders
• Promotes self-reliance among small and marginal farmers

Common Uses of the Loan

Many farmers have already benefited from this scheme in Karnataka. Here are common uses of the zero percent interest loan:

1. Buying cows or buffaloes for milk production
2. Setting up small-scale poultry or goat farms
3. Creating fish ponds or investing in fish feed and nets
4. Purchasing agricultural machinery like pumps, sprayers, or mini tractors
5. Developing irrigation systems or borewell projects
6. Buying fertilizers, seeds, or organic compost

Important Tips for Farmers

1. Always apply through your official cooperative society to avoid middlemen or fraud.
2. Keep a photocopy of all documents submitted.
3. Ensure your Aadhaar number is linked with your bank account.
4. Repay the loan on time to retain the zero-interest benefit.
5. If you need a higher amount, inquire about other government-supported loan schemes with interest subsidy.

The Zero Percent Interest Loan Scheme for farmers is a valuable initiative by the Karnataka government to promote agricultural and allied sector growth. It provides easy and interest-free financial support up to Rs. 2 lakh for those engaged in dairy, fisheries, or animal husbandry.

Step-by-Step Application Process

1. Visit your nearest Co-operative Society (PACS)
   – Go to your local Primary Agricultural Credit Society or District Co-operative Bank.

2. Ask for the Loan Application Form
   – Request the form for “Zero Percent Interest Agricultural or Animal Loan.”

3. Fill in the Application Form
   – Enter personal details, land info, and project details (if for animal or fish farming).

4. Attach All Required Documents
   – Combine all the necessary documents mentioned above.

5. Submit the Application
   – Submit the filled form at the same PACS or co-operative office.

6. Verification and Approval
   – Officials verify your eligibility and documents.
   – Once approved, the loan amount will be directly credited to your bank account.

 Official Websites

• Agricultural Crop Loan Interest Subsidy Scheme (Karnataka Govt.)
  https://sahakarasindhu.karnataka.gov.in/info-2/Interest%2BSubsidy%2Bfor%2BAgricultural%2BCrop%2BLoan/en

• Pashu Bhagya Scheme – For cattle, dairy, and fishery activities (Zero Interest Loan Support)
  https://davanagere.nic.in/en/scheme/pashu-bhagya/

 Example Uses of the Loan

• Buying cattle, buffalo, or goats

• Setting up a small dairy or fish farm

• Purchasing seeds, fertilizers, or irrigation equipment

• Developing small agricultural infrastructure like sheds or water tanks

Zero Percent / Low Interest Agricultural Loan Schemes – State-wise Details (2025 Update)

State	Scheme / Program Name	Loan Benefit	Where to Apply / Official Link
Karnataka	Interest Subsidy for Agricultural Crop Loan Scheme	Up to ₹3 lakh at 0% interest for crop loans; ₹2 lakh for cattle/fish farming	https://sahakarasindhu.karnataka.gov.in/info-2/Interest%2BSubsidy%2Bfor%2BAgricultural%2BCrop%2BLoan/en
Telangana	Crop Loan Waiver & Subsidy Scheme	Interest-free loans up to ₹1 lakh for timely repaying farmers	https://clw.telangana.gov.in
Telangana	Agriculture Department Schemes Portal	Details of all crop and farm-related subsidies	https://agri.telangana.gov.in
Telangana	Telangana Grameena Bank Crop Loan Application	Apply online for crop loans	https://tgbhyd.in/apply-now/crop-loan
Andhra Pradesh	YSR Vaddi Leni Runalu (Zero Interest Crop Loan Scheme)	Up to ₹1 lakh zero interest loan for farmers repaying on time	https://www.apagrisnet.gov.in
Andhra Pradesh	Andhra Pradesh Grameena Bank – Agriculture Loans	Low-interest and zero-interest loans for farming and allied activities	https://apgb.bank/banking-products/loans/agriculture-loans

How to Apply (Simple Guide for Telugu & Kannada People)

1. Visit your nearest Co-operative Bank / PACS or Regional Rural Bank (Grameena Bank).
2. Ask for the “Zero Interest Agriculture Loan” application form.
3. Fill in your personal details, land information, and attach required documents (Aadhaar, land proof, bank details).
4. Submit the form for verification.
5. Once approved, the loan amount is credited directly to your bank account.

By applying through your nearest cooperative society and submitting the required documents, you can access the loan quickly and start building a more secure and sustainable agricultural future.

For many farmers, this scheme has become a lifeline — offering both financial relief and opportunities for expansion without the burden of high interest costs.