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New Delhi, March 31, 2020
In the wake of the lockdown due to the ongoing Covid-19 pandemic, the Government has extended the benefit of 2% Interest Subvention (IS) to banks and 3% Prompt Repayment Incentive (PRI) to all farmers up to May 31.
This is applicable for all crop loans up to Rs 3 lakh given by banks which have become due or are becoming due between March 1 and May 31, an official press release said.
Due to restrictions imposed on the movement of people, many farmers are not able to travel to bank branches for payment of their short-term crop loan dues. Moreover, 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 release said.
To address this problem being faced by farmers, an extension of Interest Subvention (IS) and Prompt Repayment Incentive (PRI) benefits up to May 31 on the short term crop loans up to Rs 3 lakh which are due up to May 31 will help the farmers to repay such loans up to the extended period at 4% p.a. interest without attracting any penalty, it said.
The Government is providing concessional crop loans to farmers through banks with 2% p.a. interest subvention to banks and 3% additional benefit on timely repayment to farmers thus providing loans up to Rs.3 lakh at 4% p.a. interest in timely repayment, the release added.