In the wake of lockdown due to Covid-19 pandemic, the government has extended benefit of 2 percent interest subvention to banks and 3 percent prompt repayment incentive for farmers up to May 31, 2020, for crop loans up to Rs 3 lakh due between March 1 and May 31.
Many farmers are not able to travel to bank branches for payment of their short term crop loan dues, as restrictions imposed on movement of people, the government said in statement on Monday.
Moreover, due to restrictions on movement of people and difficulty in timely sale and receipt of payment of their produce, farmers could be facing difficulties in repayment of their short term crop loans falling due during this period, according to the government.
These steps will help the farmers repay such loans up to the extended period at 4 percent per annum interest without attracting any penalty, it said.
Government is providing concessional crop loans to farmers through banks with 2 percent yearly interest subvention to banks and 3 percent additional benefit on timely repayment to farmers thus providing loans up to Rs 3 lakh.