In the wake of lockdown due to the ongoing COVID-19 pandemic, the central government on Monday extended the benefit of 2% Interest Subvention (IS) to banks and 3% Prompt Repayment Incentive (PRI) to all farmers up to May 31 for all crop loans up to Rs.3 lakh given by banks. This applies to the loans which have become due or are becoming due between March 1 - May 31, a Press Information Bureau (PIB) release clarified.
Due to restrictions imposed on the 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 of their produce, 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 farmers, an extension of Interest Subvention (IS) and Prompt Repayment Incentive (PRI) benefit up to 31st May 2020 on the short term crop loans up to Rs.3 lakh which are due up to 31st May 2020, shall help the farmers to repay such loans up to the extended period at 4% p.a. interest without attracting any penalty," the release underlined.
It further stated that the government is providing concessional crop loans to farmers through banks with 2% per annum interest subvention to banks and 3% additional benefit on timely repayment to farmers thus providing loans up to Rs.3 lakh at 4% per annum interest on timely repayment.
In light of the heightened concern on the spread of the coronavirus disease (COVID-19) in India, the country has been placed under complete lockdown for 21 days. Authorities have asked citizens to maintain strict social distancing to cut the spread of the virus outbreak.
As of 11 PM on Monday, over 1,000 people across India have been reported to have contracted the COVID-19 disease, as new cases were reported in Tamil Nadu, Maharashtra, and Rajasthan on this day. The virus has affected over 7.4 lakh people worldwide. The global death toll has crossed 35,000, according to the COVID-19 statistics center at the John Hopkins University.COVID-19.
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