Government extends crop loan interest benefits to farmers till May 31

The government today extended the benefit of two per cent Interest Subvention (IS) to banks ad three per cent Prompt Repayment Incentive (PRI) to all farmers up to May 31, 2020. The decision was taken in the wake of national lockdown due to Coronavirus, COVID-19.

The interest subsidy has been extended to all crop loans up to Rs 3 lakh given by banks which have become due or are becoming due between March 1, 2020, and May 31, 2020.

The Ministry of Agriculture in a statement has said that many farmers are not able to travel to bank branches for payment of their short term crop loan dues due to the restrictions that have been imposed on the movement of people. It also said, due to restrictions on the movement of people and difficulty in timely sale and receipt of payment of their produce, farmers may be facing difficulties in repayment of their short term crop loans falling due during this period.

The Ministry said this extension of Interest Subvention and Prompt Repayment Incentive (PRI) benefit will help the farmers to repay such loans up to the extended period at 4 per cent per annum interest without attracting any penalty.

Besides, the Government is providing concessional crop loans to farmers through banks with 2 per cent interest subvention to banks and 3 per cent additional benefit on timely repayment to farmers thus providing loans up to 3 lakh rupees at 4 per cent per annum interest on timely repayment.