Govt extends benefit of interest subvention and prompt repayment incentive for short term crop loans till 31 May

Short term crop loans upto Rs 3 lakh per farmer becoming due between 1 March 2020 and 31 May 2020 to benefit

In the wake of the nationwide lockdown due to outbreak of Covid -19 pandemic and the resultant restrictions imposed on movement of people, many farmers are not able to travel to bank branches for payment of their short term crop loan dues. As per RBI circular dated 27 March 2020 regarding Covid 19-Regulatory Package, moratorium has been granted for three months on payment of installments falling due between 1 March 2020 and 31 May 2020 in respect of all term loans including short term crop loans.

Accordingly, to ensure that farmers do not have to pay penal interest and at the same time continue getting the benefits of interest subvention scheme, Government has decided to continue the availability of 2% interest subvention and 3% prompt repayment incentive to farmers for the extended period of repayment upto 31 May 2020 or date of repayment, whichever is earlier, for short term crop loans upto Rs 3 lakh per farmer which have become due between 1 March 2020 and 31 May 2020.

Powered by Capital Market - Live News