1. Please refer to our instructions on Interest Subvention Scheme for short term crop loans.
2. In the wake of the lockdown due to 2nd wave of Covid-19 pandemic, many State Governments have imposed restrictions on movement of people and farmers may be facing difficulties in repayment of their short term crop loans falling due during this time.
3. In order to ensure that farmers do not have to face the situation of paying penal interest and they continue to get the benefit of short term crop loan at concessional interest rate of 4% p.a. which is applicable on timely repayment, it has been decided by Ministry of Agriculture and Farmers’ Welfare, Government of India (vide their office memorandum dated 18.05.2021) to continue with 2% Interest Subvention to Banks and 3% Prompt Repayment Incentive to farmers for the extended period of repayment of short term crop loans upto 30.06.2021 or upto date of actual repayment whichever is earlier, for the short term crop loan of upto Rs 3 lakh per farmer given by Banks @7% p.a. which have fallen due or shall fall due between 01.03.2021 and 30.06.2021.
4. Banks are therefore advised to continue to provide IS and PRI benefit to farmers for the extended period of repayment of short term crop loans upto 30 June 2021, for the loans which are due between 1st March 2021 and 30 June 2021.