Govt Extends Crop Loan Interest Benefits Till May 31

Agri Business
Our Bureau

New Delhi | Updated on

March 30, 2020

Published on

March 30, 2020

Farmers who have taken short-term crop loans will get time till May 31 to repay the loan without losing the benefit of interest subvention and other additional incentives offered by the government on timely repayment, an official statement said here on Monday.

Taking into consideration the problems faced by farmers because of the nation-wide lockdown, the government has decided to extend the benefit of 2 per cent interest subvention to banks and 3 per cent incentive on prompt repayment to all farmers up to May 31 for all crop loans up to ₹3 lakh given by banks which have become due or are becoming due between March 1 and May 31 this year, the statement said.

Farmers are facing difficulty in going to bank branches due to the lockdown and because of timely sale and receipt of payment of their produce.

The decision would make it possible for farmers to enjoy the effective interest rate of 4 per cent on crop loans up to ₹3 lakh for an extended period without attracting any penalty, it said.

Published on March 30, 2020

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