One-time settlement of loans to give big relief to farmers in Rajasthan

Rajasthan CM Bhajan Lal Sharma speaks during the Assembly session on March 13, 2025. Photo: X/@BhajanlalBjp

A one-time settlement scheme for agricultural land development loans, announced by Rajasthan Chief Minister Bhajan Lal Sharma, is set to give a big relief to the farmers with a proposed expenditure of ₹200 crore on the programme. These loans are disbursed in the State by the Rajasthan Rajya Sahakari Bhoomi Vikas Bank.

Mr. Sharma said in the State Assembly while replying to the debate on the 2025-26 State Budget that the one-time settlement formed part of the government’s continuous measures for welfare of farmers. Land development loans comprise financial assistance given to farmers for carrying out farm development activities, such as land reclamation, soil development, on-farm development works, and soil and water conservation which help them earn income.

Minister of State for Cooperative Gautam Kumar Dak said here on Thursday that the decision would bring the overdue borrowers of the bank back into the mainstream. “This announcement will not only provide relief to over 36,000 loanee members associated with the primary land development banks, but will also improve financial conditions of these banks,” Mr. Dak said.

The long-term land development loans disbursed to the farmers and small entrepreneurs have played an important role in the agricultural and economic development of the State. However, several of the 36 primary land development banks are running in losses and are also lagging behind in recovery of loans from the farmers.