Farmers will have time until May 31 to repay their short-term farm loans while retaining the benefit of the interest subsidy and incentives for prompt repayment, two media said on Monday, attributing the government’s decision to help people during a national foreclosure to prevent spread. coronavirus.
The government has extended the advantage of 2% interest subsidy (IS) to banks and 3% prompt repayment incentive (PRI) for all agricultural loans up to Rs 3 lakh granted by banks and which have become due or are due between March 1, 2020 and May 31, 2020, said the Hindu BusinessLine and the Economic Times.
“… due to restrictions on the movement of people and difficulties in selling timely and receiving payment for their products, farmers may face difficulties in repaying their short-term agricultural loans that are falling due during this period, “an official with the Ministry of Agriculture told Economic. Times, citing lockdown.
Last week, the government announced an economic stimulus package worth 1.7 trillion rupees to help millions of low-income households cope with the 21-day blockage.
The package was announced two days after Prime Minister Narendra Modi ordered the foreclosure to protect the country’s 1.3 billion people from the coronavirus. This led to constraints on the supply of essential items and panic purchases, leaving the poor and day-to-day workers the most vulnerable.