Centre extends time period for farm loan dues by 60 days
The Union Government on December 19, 2016, decided to provide additional grace period of 60 days to farmers, whose crop loan dues fall between November 1 and December 31, 2016. This decision was taken in view of constraints faced by the farming community in repayment of loans due to demonetization of high
value notes. If such farmers repay the loan within 60 days with effect from the date on which the repayment was due, they will be eligible for prompt repayment incentives. The Government took this step in view of the need of the farming community for more time to repay their loan dues. The move is expected to provide a boost to the rural and agricultural economy. The prompt payee farmers can avail short term crop loans at 4% per annum. This prompt repayment incentive however does not accrue to those farmers who repay after one year of availing such loans. The Union Government provides crop loans at 7% per annum to provide stimulation to rural sector and farming community. The added incentive of 3% per annum is provided to farmers for prompt repayment of loans within due date and upto a maximum period of one year.
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