New Delhi: The authorities on Monday determined that farmers who availed quick-time period crop loans at a concessional charge of four per cent every year and missed their repayment after March 1, can now repay by August 31 with out paying any penalty.
The choice, taken by the Cabinet headed by Prime Minister Narendra Modi, to increase the loan repayment date will assist farmers in avoiding travelling to banks for renewal or repayment of loans throughout the ongoing COVID-19 pandemic interval, an official assertion stated.
This is the second time the repayment date has been prolonged. Earlier it was prolonged until May 31.
This choice will assist the farmers to repay/renew such loans upto the prolonged repayment date of August 31 at four % yearly, curiosity with out attracting any penalty and thus assist them in avoiding travelling to banks for such renewal throughout this pandemic interval, Union Agriculture and Farmers Welfare Minister Narendra Singh Tomar stated in a media briefing on the cupboard selections.
In the wake of the lockdown attributable to COVID-19 pandemic, there have been restrictions imposed on motion of individuals. Many farmers are usually not capable of journey to financial institution branches for fee of their quick time period crop loan dues, the federal government stated in a press release.
Moreover, attributable to restrictions on motion of individuals, issue in well timed sale, receipt of fee of their produce and the need of adhering to social distancing norms, farmers are discovering it tough to rearrange the quantity to be deposited for renewal and are unable to go to the banks to deposit and draw recent loans, it stated.
Tomar additionally stated the federal government had borne crop loan curiosity subsidy of Rs 18,000 crore final fiscal and this may improve within the present 12 months.
With regard to Kisan Credit Card (KCC), the minister stated the federal government has supplied KCC to six.65 crore farmers at current and goals to succeed in out extra 2.5 to three crore farmers.
The farm credit score goal for the present fiscal has been set at Rs 15 lakh crore.
The authorities supplies concessional Standard Short-Term Agri-loans to farmers via banks with 2 % p.a, curiosity subvention to banks and three % extra profit on well timed repayment to farmers thus offering loans upto Rs three lakh at four p.a. curiosity on well timed repayment.