Farmers To Get 60 Additional Days For Repayment Of Crop Loans: RBI

The Reserve Bank of India (RBI) said that in view of the withdrawal of Rs 500 and Rs 1,000 currency notes, farmers, whose short term crop loan repayment date falls between 1 November and 31 December, will get additional time.

The move recognises the constraints faced by farmers for timely repayment of loan dues on account of the note ban, providing extra 60 days for prompt repayment incentive of 3 per cent to those farmers.

Currently, according to the existing crop loan interest rebate scheme for 2016-17, apart from the 2 per cent annual rebate, an additional interest rebate of 3 per cent is also provided if the farmer repays the loan up to the actual date of repayment or the date fixed by banks for repayment, whichever is earlier.

With inputs from IANS