NEW DELHI: In a bid to provide relief to farmers hit by cash crunch, the government today gave them an additional two months to repay their crop loans due in November-December period and said that prompt repayment would be eligible for the extra 3 per cent interest subsidy.
Under the interest subvention scheme, farmers get the short-term crop loan of up to Rs 3 lakh for one year at an interest rate of 7 per cent. Those repaying on time get the loan at 4 per cent.
"Appreciating the requirement for some more time by the farmers to repay their loan dues, the government has…decided to provide an additional grace period of 60 days to such of the farmers, whose crop loan dues fall due between November 1 and December 31, 2016.
"…if such farmers repay the same within 60 days with effect from the date on which the repayment was due, they will be eligible for prompt repayment incentive for 2016-17," an official statement said.
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