Relief to millions of farmers who took crop loans, the Reserve Bank issued this order to all banks
Relief to millions of farmers who took crop loans, the Reserve Bank issued this order to all banks
The Reserve Bank has given relief to millions of farmers across the country who have taken loan loans from banks through Kisan Credit Cards. The RBI has today made it clear that the Corona virus will not only benefit the three-month mortarium on crop loans, but will not have to pay punitive interest for a three-month term. At the same time, they will also get the benefit of interest subsidy scheme. This was disclosed in a letter issued by the Reserve Bank today.
There will be a two per cent discount on interest
The letter sent to the heads of all the banks said that the government has decided to extend the benefit of interest subsidy scheme to farmers on loan repayment even during the extended period.
Under this, they will get a two per cent discount in interest. At the same time, they will get a three percent incentive if they pay on time. It states that farmers who repay the loan on or before May 31, 2020, will get this benefit. Due to the lockdown, there is a ban on coming and going anywhere in the country at this time. So farmers can't reach the banks.
Farmers cannot repay loans on time
Due to the lockdown across the country, many farmers cannot go to bank branches to pay their short-term crop loan balance. In addition, farmers are not able to repay their loans on time due to restrictions on movement of people and non-timely sale and non-payment of agri commodities. Due to the lockdown, farmers are facing difficulty in repaying their short-term crop loans during this period. In view of this, the government has decided to extend this period.
Inter-state trade was also exempted
Earlier, during the nationwide lockdown period to eradicate the corona virus, they were excluded because of the difficulty associated with farming and related services. Cultivation for harvesting crops that will not hinder the harvest. Institutions related to availability of agricultural equipment, purchase of agricultural products and minimum support prices, agricultural products market committee and state government-run farmer and farm laborers, fertilizers, pesticides and people involved in sale of seeds, used in related agriculture and horticulture including harvesting. Inter-state trade has also been exempted. Fertilizer is also being sold.
Relief to millions of farmers who took crop loans, the Reserve Bank issued this order to all banks
The Reserve Bank has given relief to millions of farmers across the country who have taken loan loans from banks through Kisan Credit Cards. The RBI has today made it clear that the Corona virus will not only benefit the three-month mortarium on crop loans, but will not have to pay punitive interest for a three-month term. At the same time, they will also get the benefit of interest subsidy scheme. This was disclosed in a letter issued by the Reserve Bank today.
There will be a two per cent discount on interest
The letter sent to the heads of all the banks said that the government has decided to extend the benefit of interest subsidy scheme to farmers on loan repayment even during the extended period.
Under this, they will get a two per cent discount in interest. At the same time, they will get a three percent incentive if they pay on time. It states that farmers who repay the loan on or before May 31, 2020, will get this benefit. Due to the lockdown, there is a ban on coming and going anywhere in the country at this time. So farmers can't reach the banks.
Farmers cannot repay loans on time
Due to the lockdown across the country, many farmers cannot go to bank branches to pay their short-term crop loan balance. In addition, farmers are not able to repay their loans on time due to restrictions on movement of people and non-timely sale and non-payment of agri commodities. Due to the lockdown, farmers are facing difficulty in repaying their short-term crop loans during this period. In view of this, the government has decided to extend this period.
Inter-state trade was also exempted
Earlier, during the nationwide lockdown period to eradicate the corona virus, they were excluded because of the difficulty associated with farming and related services. Cultivation for harvesting crops that will not hinder the harvest. Institutions related to availability of agricultural equipment, purchase of agricultural products and minimum support prices, agricultural products market committee and state government-run farmer and farm laborers, fertilizers, pesticides and people involved in sale of seeds, used in related agriculture and horticulture including harvesting. Inter-state trade has also been exempted. Fertilizer is also being sold.
