Guj govt extends repayment deadline for short-term crop loan

·1-min read

Ahmedabad, Jun 3 (PTI) The Gujarat government on Thursday extended the deadline for the repayment of short-term crop loan to June 30.

The decision was taken by Chief Minister Vijay Rupani on humanitarian grounds in view of the coronavirus pandemic's impact on farmers, said a government release.

Short-term crop loans taken from a bank, be it nationalised or cooperative, can be repaid till June 30, it said.

Short-term crop loans are provided at 7 per cent interest rate. These are effectively 'zero-percent' loans as the Centre pays 3 per cent interest while the state pays 4 per cent interest on a loan taken by farmers, said the release.

The state government realised that many farmers could not repay the loans taken between April and September 2020 by the end of March this year which was the deadline, it said.

The state government will also pay the interest of 4 per cent till June, worth an estimated Rs 241.50 crore in total. PTI PJT KRK KRK

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting