Govt extends sops to farmers on loans to ease lockdown woes

 In the wake of the nationwide lockdown to combat the Covid-19 pandemic, the government on Monday provided sops to the farmers for repayment of loans.

The government has extended the benefit of 2 per cent interest subvention (IS) to banks and 3 per cent prompt repayment incentive (PRI) to all farmers up to May 31 for all crop loans up to Rs 3 lakh given by banks which have become due or are becoming due between March 1, 2020 and May 31, 2020.

An official statement said that due to the restrictions imposed on 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 movement of people and difficulty in timely sale and receipt of payment for their produce, the farmers may be facing difficulties in repayment of their short term crop loans falling due during this period.

To address this problem being faced by the farmers, extension of these benefits will help the farmers repay such loans up to the extended period at 4 per cent per annum interest without attracting any penalty.

The government is also providing concessional crop loans to farmers through banks with 2 per cent per annum interest subvention to banks and 3 per cent additional benefit on timely repayment to farmers thus providing loans up to Rs 3 lakh at 4 per cent per annum interest on timely repayment. IANS