Following the recent demonetization of higher currencies the Government has decided to provide the additional grace period of 60 days to farmers, whose crop loan dues fall due between 1st November, 2016 and 31st December, 2016.
According to govt sources it is seized of the constraints being faced by the farming community in repayment of loan dues within the prescribed time limit. Appreciating the requirement for some more time by the farmers to repay their loan dues, the Government has taken this decision.
With a view to provide stimulation to the rural sector and farming community, the Government provides crop loans at subvented rates of interest @ 7 % per annum at the ground level. An added incentive of 3 % per annum is provided to the farmers for prompt repayment of loans within due date and up to a maximum period of one year.
The prompt payee farmers in effect avail short term crop loans @ 4 % per annum. This prompt repayment incentive however does not accrue to those farmers who repay after one year of availing such loans.