CCEA extends repayment date for short term agri loans to 31 August

Decision influenced by the fact that many farmers are not able to travel to bank branches for payment of their short term crop loan dues during lockdown

Edited By J. Jagannath
Updated1 Jun 2020, 11:56 PM IST
Union Ministers Nitin Gadkari (C), Narendra Singh Tomar (L) and Prakash Javedkar brief the press on Cabinet decisions, in New Delhi, Monday (Photo: PTI)
Union Ministers Nitin Gadkari (C), Narendra Singh Tomar (L) and Prakash Javedkar brief the press on Cabinet decisions, in New Delhi, Monday (Photo: PTI)

The Union Cabinet chaired by Prime Minister Narendra Modi on Monday has given its approval to extend repayment date upto 31 August, 2020 for standard short-term loans up to 3 lakh advanced by banks for agriculture and allied activities. The facility is for loans that are due or shall become due between 1 March, 2020 and 31 August, 2020.

The government said that the move shall help the farmers to repay/renew such loans upto the extended repayment date of 31 August, 2020 at 4% p.a., interest without attracting any penalty and thus help them in avoiding travelling to banks for such renewal during this Covid-19 pandemic period.

In the wake of lockdown due to ongoing Covid-19 pandemic, there have been restrictions imposed on movement of people. Many farmers are not able to travel to bank branches for payment of their short term crop loan dues. Moreover, due to restrictions on movement of people, difficulty in timely sale, receipt of payment of their produce and the necessity of adhering to social distancing norms, farmers are finding it difficult to arrange the amount to be deposited for renewal and are unable to visit the banks to deposit and draw fresh loans.

The government has been providing concessional standard short-term Agri-loans to farmers through banks with 2% per annum interest subvention to banks and 3% additional benefit on timely repayment to farmers thus providing loans upto Rs,3 lakh at 4% per annum interest on timely repayment.


Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.MoreLess
First Published:1 Jun 2020, 11:56 PM IST
HomeNewsIndiaCCEA extends repayment date for short term agri loans to 31 August

Most Active Stocks

Tata Steel

157.35
03:20 PM | 19 JUL 2024
-9 (-5.41%)

Bharat Electronics

305.90
03:20 PM | 19 JUL 2024
-7.6 (-2.42%)

Tata Power

413.35
03:20 PM | 19 JUL 2024
-16.65 (-3.87%)

Zee Entertainment Enterprises

137.20
03:20 PM | 19 JUL 2024
-5.25 (-3.69%)
More Active Stocks

Market Snapshot

  • Top Gainers
  • Top Losers
  • 52 Week High

Tata Teleservices Maharashtra

104.48
03:08 PM | 19 JUL 2024
7.05 (7.24%)

Rail Vikas Nigam

615.10
03:08 PM | 19 JUL 2024
28.75 (4.9%)

Jubilant Pharmova

758.00
03:08 PM | 19 JUL 2024
31.05 (4.27%)

One 97 Communications

461.35
03:08 PM | 19 JUL 2024
16.3 (3.66%)
More from Top Gainers

Recommended For You

    More Recommendations

    Gold Prices

    • 24K
    • 22K
    Bangalore
    76,272.001,173.00
    Chennai
    76,124.001,465.00
    Delhi
    75,533.001,021.00
    Kolkata
    75,089.00-450.00

    Fuel Price

    • Petrol
    • Diesel
    Bangalore
    102.86/L0.00
    Chennai
    100.76/L0.00
    Kolkata
    104.95/L0.00
    New Delhi
    94.72/L0.00
    OPEN IN APP
    HomeMarketsPremiumInstant LoanBudget