Maharashtra’s concession for farmers who repay crop loans on time

Our Bureau Mumbai | Updated on June 10, 2021

Maharashtra Chief Minister Uddhav Thackeray   -  PTI

Will be charged zero per cent interest on loans up to ₹3 lakh

Fulfilling its earlier promise, the Maharashtra Government, at its Cabinet meeting on Thursday, decided that farmers who repay crop loans on time will be charged with zero per cent interest on loans up to ₹3 lakh, a media statement issued by the Chief Minister Office said.

Deputy Chief Minister and Finance Minister of Maharashtra Ajit Pawar had announced in the Budget session of the State Legislature that crop loans up to ₹3 lakh would be charged a nil interest rate.

The statement said that this decision will enable farmers to purchase modern agricultural inputs such as seeds, fertilizers and pesticides, which will help in increasing agricultural income and farm production. It will help improve the financial situation of banks by increasing the recovery.

As a result of this decision, the farmers availing crop loans will get the combined benefit of interest rate concession from the State and Central government. The benefit can be availed under the Dr Punjabrao Deshmukh Interest Concession Scheme for short term loans, the statement said.

The State Cabinet decided to give the farmers a discount of two per cent on the interest rate if they repaid the loan within the stipulated time. Therefore, from 2021-22, if the short term loan is repaid by the farmers within the prescribed period, they stand to gain a total of six per cent discount on interest, the statement added.

Published on June 10, 2021

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