In a step aimed at providing relief to farmers hit by demonetisation, the Centre on Tuesday gave 60 days more for availing of prompt repayment incentive of 3 per cent to those farmers whose crop loan due dates fall between November 1 and December 31 of this year.
Under the interest subvention scheme, farmers get the short-term crop loan of up to `3 lakh for one year at an interest rate of 7 per cent. Those repaying on time get the loan at 4 per cent. “It has been decided that an additional grace period of 60 days for prompt repayment incentive at 3 per cent will be provided to those farmers, whose crop loan dues are falling within November 1 and December 2016 and if such farmers repay loan within 60 days,” Joint Secretary in Agriculture Ministry Ashish Kumar Bhutani told PTI.