The Indian government on Monday said those farmers who got short-term Agri crop loans at a concessional rate of 4 percent per annum and missed their repayment after March 1, and govt announced that they can now repay by August 31 without paying any penalty. By Prime Minister Narendra Modi, And the increase of repayment date will useful to agricultural farmers in stop traveling to banks for renewal or repayment of loans during the ongoing pandemic period COVID-19.
Earlier repayment of loans it was extended till May 31. And now it was the second time the repayment date has been extended.
The farm loans Normally an interest rate of 9 percent. But our government is offering a 2 percent interest rate subsidy to ensure the farmers get short-term Agri loans of up to Rs 3 lakh at a concession rate of 7 percent per annum.
However, The Cabinet minister's decision taken will benefit all categories of farmers. And the interest rate has seen even lower at 4 percent to those farmers who repay their loans timely.
An agriculture minister Narendra Singh Tomar said to the press after the meeting. Agriculture farmers, they will repay their loan before August 31 will be levied a reduce the interest rate of 4 percent.
Tomar said the government is not an astrologer. The increased date of the repayment period is till August 31, which means that the COVID-19 crisis will continue until that time.
In the lockdown due to the COVID-19 pandemic, there has been a problem imposed on the movement of people. So many farmers are unable to travel to bank branches for payment of their short term crop loan dues, the government said in a statement.
The difficulty in the timely sale, due to restrictions period of people, receipt of payment of their products, and the necessity of to social distancing norms, Agri farmers are finding it more difficult to arrange the amount to be deposited for renewal and are unable to visit the banks to deposit and draw fresh loans, it said.
The government had allowed crop loan interest subsidy of Rs 18,000 crores last fiscal situation and this might high in the current year.
By Kisan Credit Card (KCC), the minister said that the government has allotted to KCC to 6.65 crore rs to farmers at present and target to reach out an additional 2.5 to 3 crore farmers.
The agriculture credit target for the current situation has been set at Rs 15 lakh crore.