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.
Govt extended upto Rs 3 lakh crop loan interest benefits to farmers till May 31
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