- The government has extended the benefit of 2% interest subvention (IS) to banks and 3% prompt repaymentincentive (PRI) to all farmers up to May 31, 2020 for all crop loans up to 3 lakhwhich have become due or are becoming due between March 1 and May 31, 2020. The decision has been taken due to the national lockdown situation to prevent Covid-19 infection.
- The lockdown has restricted movementof people therefore farmers are facing difficulty in visiting bank branches.
- Also, the hassle in timely sale and receipt of payment of their produce, farmers may be facing monetary issuesin repayment of their crop loans.
- This extension will help farmers to payback the loan and also become eligible for loans in next financial year.
Point to be noted:
- The government provides concessional crops loans to farmers through banks with 2% per annum interest subvention to banks and 3% additional benefit on timely repayment to farmers. So, overall the govt. is providing loans up to Rs 3 lakh at 4% per annum interest on timely repayment.
