Tue Mar 11 14:02:03 UTC 2025: ## Karnataka’s Subsidized Farm Loans Plummet by 58%
**Bengaluru, March 11, 2025** – A significant decrease in subsidized short-term agricultural loans for Karnataka has been reported. Cooperation Minister K.N. Rajanna revealed that the National Bank for Agricultural and Rural Development (NABARD) has released only ₹3,236 crore this financial year (2024-25), a 58% drop from the ₹5,600 crore disbursed in 2023-24.
This shortfall comes despite Karnataka’s request for ₹9,219 crore. While NABARD initially provided only ₹2,340 crore, further appeals from the Chief Minister and Minister Rajanna secured an additional ₹896 crore. The state hopes for further funds.
The Minister attributed the reduced allocation to a nationwide decrease in funding from NABARD. He highlighted that Karnataka was the only state to receive additional funding after direct communication with NABARD.
Although funding for higher-interest short-term loans increased from ₹5,200 crore in 2023-24 to ₹8,580 crore in 2024-25, medium and long-term loans experienced a significant decrease, falling from ₹2,199.62 crore to ₹1,128.65 crore.
The state received substantial funding in previous years: ₹5,500 crore (2020-21), ₹5,483.90 crore (2021-22), ₹5,550 crore (2022-23), and ₹5,600 crore (2023-24). Additional COVID-19 relief funding of ₹1,700 crore and ₹1,415 crore was also received in 2020-21 and 2021-22 respectively. The current shortfall represents a significant challenge for Karnataka’s agricultural sector.
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