The Bihar government has entered into an agreement with NABARD to provide an additional 1% interest subsidy on agricultural loans during the 2025–26 financial year, offering fresh relief to farmers. With this move, the state subsidy will supplement the 3% interest support already provided by the Centre, taking the total benefit to 4%.
The subsidy will apply to crop loans of up to Rs 3 lakh availed through Kisan Credit Cards from commercial banks, regional rural banks and cooperative banks. Only farmers who repay their loans within the stipulated time will be eligible.
State agriculture minister Ram Kripal Yadav said the initiative would lower borrowing costs and improve farmers’ access to institutional credit. Officials noted that cheaper loans are expected to encourage investment in modern farming practices and inputs such as seeds, fertilisers and irrigation. NABARD will serve as the nodal agency, with Rs 5 crore earmarked for the scheme.
