Farmers whose crop loan dues fall between November 1 and December 31 have cause for cheer. The Centre has given an additional grace period of 60 days for repayment of their loan dues.
If such farmers repay their dues within 60 days with effect from the repayment due date, they will be eligible for prompt repayment incentive for 2016-17, an official release said on Tuesday.
Currently, the government provides crop loans at a subvented interest rate of 7 per cent per annum. An additional incentive of 3 per cent per annum is provided to farmers for prompt repayment of loans within the due date and up to a maximum period of one year.
Such farmers can, in effect, avail themselves of short-term crop loans at 4 per cent per annum. The prompt repayment incentive, however, does not accrue to farmers who repay after one year of taking such loans.