The 5 things you need to know about PM Kisan Yojana

The Pradhan Mantri Kisan Yojana (PMKSY) aims to double the income of small and marginal farmers by 2022. The central government has allocated ₹60,000 crore to the scheme which will be implemented in several phases till 2022. PMKSY includes several other measures such as soil health card, market reforms and crop insurance schemes. Here are 5 things you need to know about the PMKSY. [List out the 5 points]

1) What is it?

The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) is a new scheme launched by Narendra Modi in an attempt to reduce rural distress. The scheme will cost Rs 75,000 crore per year, with each farmer receiving Rs 6,000 annually for an indefinite period of time. This amount can be used for any purpose—it’s not tied to any specific crop or commodity, nor does it have any conditions attached. It can be used as a buffer against losses incurred during farming seasons and has been set up as a direct transfer from government coffers into farmers’ bank accounts via Aadhaar authentication. This means that no middlemen are involved and there are no leakages or corruption involved either. In fact, one of the biggest criticisms of previous agricultural schemes was that they were riddled with corruption and misuse. With PM-KISAN, all payments will be made directly to beneficiaries without any intermediaries or leakage. And if you don’t use your entire installment?

2) Who Can Join?

The scheme is open to all those farmers who are engaged in agricultural activities and have taken at least one loan from a financial institution or cooperative society. The amount of insurance cover will be 100% of annual average gross sum assured during both Kharif and Rabi seasons, subject to a maximum limit of Rs 2 lakh per annum for each farmer. How much does it cost?: There will be no premium on kharif crops but for rabi crops, an annual premium of only 1% of sum insured has been proposed. This would mean that if your coverage is Rs 1 lakh then your premium would be just Rs 1000. However, there’s a catch – only first time applicants will get full exemption from paying premiums on rabi crops. Those who had availed crop insurance earlier will have to pay 50% of the premium as they are considered repeat policyholders. Who can benefit: The beneficiaries under Pradhan Mantri Fasal Bima Yojana (PMFBY) include cultivators having land holdings up to two hectares, tenant farmers cultivating land up to two hectares and landless agricultural labourers with up to 0.05 hectare land holding. These three categories of beneficiaries account for over 95 percent of total operational holdings in India.

3) Benefits

Under Pradhan Mantri Kisan Samman Nidhi Scheme, farmers will get Rs. 6000 each year in three installments. The scheme was announced by Narendra Modi on 1st December 2017 and will be started from December 10th 2017. It is a new income support scheme for small and marginal farmers having land holding of up to 2 hectares (ha). It is also known as PM-KISAN or Pradhan Mantri Kisan Samman Yojana.

4) When Can You Get It?

The government has made it pretty clear that eligible farmers can get loans under PM Kisan Yojana from April 1, 2018. You don’t have to wait for that date; starting today, you can apply for loans under Fasal Bima Yojana and NABARD/KVIC Rural Self-Employment Scheme. However, these are not part of PM Kisan Yojana. So if your applications are approved before April 1, they will be processed using old schemes. After April 1, all new applications will be processed through PM Kisan Yojana. How Much Can You Get?: Under PM Kisan Yojana, you can get a loan up to Rs. 2 lakhs per year—and there is no upper limit on how many times you can apply. What Are You Eligible For?: To be eligible for PM Kisan Yojana, you must own land (at least one hectare) or be a member of an agricultural cooperative society. Your annual income should also fall below Rs. 3 lakhs (if you’re single) or Rs. 6 lakhs (if you’re married). What Do I Need to Apply?

5) How Much Does it Cost?

Well, obviously, an awful lot. The government has set aside 100 billion Indian rupees ($1.6 billion) for it over a period of six years (out of a total budgeted outlay of 640 billion Indian rupees—$10.7 billion). This includes 20 percent given by states and 20 percent given by center; whatever is left is up to you. If you have that kind of money in your pocket just sitting around, then go right ahead!