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 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
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