Bihar Agriculture Minister Ram Kripal Yadav and NABARD officials
By Neeraj Kumar
Patna: In a major initiative aimed at providing affordable agricultural credit and encouraging farmers to adopt modern farming practices, the Bihar Government has signed a Memorandum of Understanding (MoU) with NABARD under the 1 per cent interest subvention scheme. NABARD Chief General Manager Gautam Kumar Singh was also present on the occasion.
The agreement has been signed for the financial year 2025–26 and will provide additional interest relief to farmers across the state. The move is expected to ease the loan burden on farmers, expand access to institutional credit and give fresh momentum to investment, production and income growth in the agricultural sector.
On behalf of the Agriculture Department, Saurabh Suman Yadav, Director of Agriculture, Bihar, Patna; Sushil Kumar, Joint Director (Statistics), Headquarters, Bihar, Patna; and Washid Iqbal, Assistant Director (Statistics), Bihar, Patna, signed the MoU. From NABARD’s side, Bhola Prasad Singh, Deputy General Manager; Vijay Kumar, Assistant General Manager; and Satvik Satyakam Devta, Assistant Manager, formally executed the agreement.
Under the scheme, the state government will provide an additional 1 per cent interest subsidy from its own budget, over and above the 3 per cent interest subvention already extended by the Government of India on agricultural loans. As a result, farmers in Bihar will be eligible for a 1 per cent interest subsidy on crop loans, Kisan Credit Card (KCC) loans and short-term agricultural production loans of up to ₹3 lakh obtained from commercial banks, regional rural banks and cooperative banks. The benefit will be available only to those farmers who repay their loans within the stipulated period.
The primary objective of the scheme is to reduce the interest burden on agricultural loans and motivate farmers to opt for institutional credit. This, in turn, will enable them to invest in quality seeds, fertilisers, pesticides, irrigation and other agricultural inputs, leading to higher productivity and increased farm output.
NABARD has been designated as the state agency for implementing the scheme. For the financial year 2025–26, the Bihar Government has earmarked ₹5 crore towards the 1 per cent interest subsidy on agricultural loans. Farmers receive agricultural credit for cultivation primarily through the Kisan Credit Card mechanism.
Speaking on the occasion, Agriculture Minister Ram Kripal Yadav expressed confidence that the 1 per cent interest subvention scheme would serve as a strong financial support for farmers and encourage them to access institutional credit on time. He said the initiative would help farmers invest in improved seeds, fertilisers, irrigation facilities, farm mechanisation and new technologies, ensuring sustained growth in productivity, quality and income.
The minister added that, with NABARD’s cooperation, the scheme would be implemented in an effective, transparent and time-bound manner. He described the MoU as a significant milestone in the Bihar Government’s farmer-friendly policies, financial inclusion efforts and the drive towards self-reliant agriculture, which would strengthen the state’s agricultural economy and provide a durable foundation for rural prosperity.
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