The Union Cabinet on monday approved extension of repayment date for agriculture short term loans.
01 June 2020, New Delhi: The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi has given its approval to extend repayment date upto 31.08.2020 for Standard Short-Term loans upto Rs.3 lakh advanced for agriculture and allied activities by banks, which have become due or shall become due between 1st March, 2020 and 31st August, 2020 with continued benefit of 2% Interest Subvention (IS) to Banks and 3% Prompt Repayment Incentive (PRI) to farmers.
This extension of repayment date will help the farmers to repay/renew such loans upto the extended repayment date of 31.08.2020 at 4% p.a., interest without attracting any penalty and thus help them in avoiding travelling to banks for such renewal during this COVID pandemic period.
Govt. is providing concessional Standard Short-Term Agri-loans to farmers through banks with 2% p.a, interest subvention to banks and 3% additional benefit on timely repayment to farmers thus providing loans upto Rs. 3 lakh at 4% p.a. interest on timely repayment.