New Delhi, Jun 1 : The Union Cabinet, chaired by Prime Minister Narendra Modi, on Monday approved extension of the repayment date of Standard Short Term loans up to Rs three lakh for agriculture and allied activities by banks, for those that were to be paid between March 1 to August 31.
The benefit of two per cent has also been added to this for banks and three per cent for the PRI farmers, that shall help farmers repay the loans till the extended date at four per cent per annum. This will also help them as the arrangement would not attract any penalty, thus also helping them to avoid travel to the banks in the pandemic times.
In the wake of lockdown due to the ongoing Novel Coronavirus contagion, there have been restrictions imposed on the movement of people. Due to this, 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, difficulty in timely sale, receipt of payment of their produce and the necessity of adhering to social distancing norms, farmers are finding it difficult to arrange the amount to be deposited for renewal and are also unable to visit the banks to deposit and draw fresh loans. (UNI)