The government extends the interest rate benefits on crop loans for farmers until May 31

May farmers have time to repay their short-term crop loans while retaining the benefit of interest subsidies and timely repayment incentives, PTI reported Monday, attributing the government decision to help people during a national lockdown to prevent the spread of. to prevent the coronavirus.

The government has given banks the benefit of 2 percent interest subsidy and 3 percent immediate repayment incentive (PRI) for all bank-granted crop loans up to Rs 3 lakh due or due between March 1, 2020 and May 31. this year.

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“… due to restrictions on passenger traffic and difficulties in selling and receiving payment for their produce on time, farmers may have difficulty paying back their short-term crop loans due during this period,” an Agriculture Department official told Economic. Times, based on the lockdown.

Last week the government announced a Rs 1.7 trillion stimulus package to help millions of low-income households navigate the 21-day lockdown.

The package was announced two days after Prime Minister Narendra Modi ordered the lockdown to protect the country’s 1.3 billion people from coronavirus. This led to supply shortages of essential goods and panic buying, making the poor and day laborers the most vulnerable.

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