CCEA extends repayment date for short-term agricultural loans to August 31

The Union Cabinet chaired by Prime Minister Narendra Modi on Monday gave approval to extend the repayment date to August 31, 2020 for standard short-term loans up to 3 lakh advanced by banks for agriculture and related activities. The facility is for loans due or maturing between March 1, 2020 and August 31, 2020.

The government said this decision will help farmers to repay/renew these loans until the extended repayment date of August 31, 2020 at 4% interest per annum without incurring any penalty and thus help them to avoid going to banks for such renewal during this period. Covid-19 pandemic period.

Following the lockdown due to the ongoing Covid-19 pandemic, restrictions have been imposed on the movement of people. Many farmers are unable to travel to bank branches for payment of their short-term loan entitlements. In addition, due to restrictions on the movement of people, difficulties in timely sales, receipt of payment for their products and the need to adhere to social distancing norms, farmers are struggling to organize the amount. to deposit for renewal and cannot visit banks to deposit and take out new loans.

The government has extended standard short-term agricultural loans to farmers through banks with an interest subsidy of 2% per annum to banks and an additional 3% benefit on timely repayment to farmers, thereby providing loans up to Rs. 3 lakh at 4% interest per annum. on timely reimbursement.

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Aurora J. William