On 19 June 2025, Gujarat launched a transformative micro-credit scheme aimed at empowering farmers with accessible, low-interest loans. Administered through the I-Khedut portal, the initiative targets small and marginal farmers, offering up to ₹2 lakh to enhance agricultural productivity. Backed by NABARD and local cooperatives, the scheme promotes sustainable farming, financial inclusion, and rural prosperity, aligning with Gujarat’s vision for agricultural growth.
Gujarat’s New Micro-Credit Initiative Empowers Farmers
On 19 June 2025, the Gujarat government rolled out a groundbreaking micro-credit scheme designed to uplift small and marginal farmers across the state. Launched under the Department of Agriculture, Farmers Welfare, and Co-operation, the initiative aims to provide affordable credit access through the I-Khedut portal, streamlining applications and disbursals for farmers. The scheme offers loans up to ₹2 lakh at subsidized interest rates, with a repayment tenure of up to five years, to support agricultural activities, allied sectors, and farm mechanization.
The program, backed by the National Bank for Agriculture and Rural Development (NABARD), collaborates with rural cooperatives and regional banks to ensure last-mile delivery of credit. Farmers can apply online, submitting documents like Aadhaar, land ownership proof, and bank details for swift verification. The scheme prioritizes transparency, with Direct Benefit Transfer (DBT) ensuring subsidies reach eligible beneficiaries without intermediaries.
Targeting over 5 lakh farmers in its initial phase, the initiative focuses on enhancing productivity through investments in seeds, fertilizers, irrigation systems, and equipment like tractors and solar pumps. It also supports allied activities such as dairy farming and horticulture, fostering diversified income sources. According to state officials, the scheme is expected to inject ₹10,000 crore into Gujarat’s rural economy over the next three years, boosting agricultural output and rural livelihoods.
The micro-credit program aligns with Gujarat’s broader rural revival strategy, complementing existing schemes like the Farmer Registry and Smartphone Subsidy Yojana. By integrating digital tools, the state aims to empower farmers with real-time access to weather forecasts, market prices, and government services. The initiative has been lauded by agricultural experts for its potential to reduce dependency on informal lending and curb rural distress.
Local cooperatives, including Primary Agricultural Credit Societies (PACS), play a pivotal role in disbursing loans and providing financial literacy training. The scheme also includes provisions for women farmers and Self-Help Groups (SHGs), promoting gender-inclusive growth. With Gujarat’s agriculture sector contributing significantly to the state’s GDP, this micro-credit push is poised to strengthen the backbone of India’s rural economy.
Disclaimer: This article is based on information from official government announcements, NABARD reports, and credible news sources as of 19 June 2025. Readers are advised to verify details through the I-Khedut portal or relevant authorities before applying for the scheme.