Himachal Pradesh Agriculture Loan Interest Subvention Scheme (One-Time Settlement)
₹50 crore one-time settlement — the state bears 50% of outstanding interest on overdue agricultural loans up to ₹3 lakh, saving 6,356 farmers from land auction.
Run by: Department of Cooperation, Government of Himachal Pradesh
- Budget outlay
- ₹50 crore
- Interest relief
- 50% of outstanding interest
- Loan ceiling
- ₹3 lakh per farmer
- Expected beneficiaries
- 6,356 farmers
- Implementing banks
- HP SCARDB + Kangra CARDB
Overview
The Agriculture Loan Interest Subvention Scheme was announced by the Himachal Pradesh government in 2026 as a one-time settlement policy to rescue farmers whose agricultural loans have become overdue and whose land holdings are under threat of auction by cooperative banks.
Under the scheme, the state government bears 50% of the outstanding interest liability on agricultural loans up to ₹3 lakh per farmer. With a budget outlay of ₹50 crore, an estimated 6,356 farmers across Himachal Pradesh are expected to benefit. The relief is designed to help farmers regularise their defaulted loans, clear their credit history and continue farming without losing their land.
The scheme is implemented through the Himachal Pradesh State Cooperative Agriculture and Rural Development Bank and the Kangra Cooperative Agriculture and Rural Development Bank — the two main cooperative land-development banks in the state. The bank branches identify and prepare the list of eligible borrowers from their records; farmers do not need to apply separately.
What you get
The benefit as the state notifies it — nothing here is an estimate.
- State government pays 50% of the outstanding interest on overdue agricultural loans up to ₹3 lakh — the farmer pays the remaining 50% to regularise the loan.
- Prevents land auction: farmers facing forced sale of their land holdings due to loan default get relief.
- Loan regularisation restores the farmer's credit history, making them eligible for fresh credit.
- No separate application required — bank branches identify eligible borrowers from their records.
- One-time settlement: clears the accumulated interest burden that trapped farmers in a debt cycle.
Who is eligible
State schemes usually state their criteria as prose rather than a checklist. This is that prose, unpacked — the department’s verification is what decides.
You qualify if
- Farmer in Himachal Pradesh with an overdue agricultural loan from a cooperative land-development bank
- Loan principal up to ₹3 lakh
- Land holdings under threat of auction or recovery proceedings by the bank
- Loan from the HP State Cooperative Agriculture and Rural Development Bank or Kangra Cooperative Agriculture and Rural Development Bank
Not covered
- Agricultural loans above ₹3 lakh principal
- Loans from commercial banks or other institutions not covered under the scheme
- Farmers whose loans are not yet classified as overdue / under recovery
Documents you need
Have these ready before you start — most rejections are a missing paper, not a missing right.
- No separate application: the bank branch prepares the beneficiary list from its records
- Farmers may need to visit the branch with Aadhaar card and loan account passbook to confirm details and consent to the settlement
How to apply
Fewer steps than a central scheme, and usually one office rather than a portal.
- 1
Bank identifies eligible borrowers
The HP SCARDB or Kangra CARDB branch reviews its records and prepares a list of farmers with overdue agricultural loans up to ₹3 lakh facing recovery or auction proceedings.
- 2
Farmer is notified
The branch contacts eligible farmers and explains the one-time settlement: the government pays 50% of outstanding interest, the farmer pays the remaining 50% and the principal.
- 3
Farmer consents and pays their share
Visit the bank branch with your Aadhaar and loan passbook. Agree to the settlement terms and pay your 50% share of the interest plus the outstanding principal.
- 4
Government releases its 50% share
The state government releases the remaining 50% of the interest amount to the bank. The loan is marked as settled, recovery/auction proceedings are dropped, and your credit record is regularised.
If something goes wrong
Missing from the list, or payment stuck — here is the channel the department itself publishes for it.
- For issues with eligibility, settlement calculation or bank processing, contact the branch manager of your HP SCARDB or Kangra CARDB branch first.
- For escalation, use the HP eSamadhan portal at esamadhan.nic.in or the CM Helpline at 1100 (CM Sewa Sankalp).
Frequently asked questions
How much interest relief does a farmer get?
50% of the outstanding interest on agricultural loans up to ₹3 lakh. The state government pays this share directly to the bank.
Do I need to apply?
No. The bank branches identify eligible borrowers from their records. You will be contacted if you qualify. Visit your branch if you believe you are eligible but have not been contacted.
Which banks are covered?
HP State Cooperative Agriculture and Rural Development Bank (HP SCARDB) and Kangra Cooperative Agriculture and Rural Development Bank. Loans from commercial banks are not covered.
What happens to the auction threat?
Once you settle under this scheme (pay your 50% share), the recovery and auction proceedings are dropped and your loan is regularised.
Is this a full loan waiver?
No. The principal must still be repaid in full. The government waives only 50% of the accumulated interest. The farmer pays the remaining 50% of interest plus the principal.
How many farmers benefit?
An estimated 6,356 farmers across Himachal Pradesh, with a total government outlay of ₹50 crore.
Facts checked against himachal.nic.in on 30 September 2026. editorial policy.