How to Claim 60 Days of Interest by Government for Rabi and Kharif Crops
Agriculture is the broadest economy sector of India and it plays a pivotal role in the socio-economic fabric of the country. Most of the rural India lives on agrarian sector. For socio-economic growth and well-being of the country, it remains to see that the sector is taken care of. Here we will discuss on a scheme of interest waiver for the two months on farm loans for Kharif and Rabi crop.
In a bonanza to farmers, Prime Minister Narendra Modi announced 6% waiver of interest to the farmers for 60 days for the loan they have taken for sowing activities for Kharif and Rabi crop from District Cooperative and Primary Societies.
The interest will be borne by the government. The interest waiver was announced on the eve of New Year with a view to providing relief to farmers for the difficulties faced by them post demonetization.
Aims of Interest Exemption
It is to ensure that farmers do not find it much difficult to buy seeds, fertilizers, and credit. The interest waiver is aimed at easing problems due to demonetization.
Key Features of interest waiver for farmer loans
- Interest waiver is provided for November and December 2016 for crop loan from Cooperative Banks taken between April 1 and September 30, 2016.
- Farmers who have paid interest already for the said two months, the interest amount will be deposited in the bank account of them.
- It is towards interest on short term crop loans.
- The government will bear the financial liability of Rs 1060.50 crore towards the interest relief.
Efforts are also being made to for easy availability of loans to farmers. In an effort to help farming sector, the central government has allocated Rs 15,000 crore for interest subvention scheme for the year 2016-17.
The interest subvention scheme is being run since 2006 and under the scheme; farmers are provided a loan of up to Rs 3 lakh at 7% interest by the Public Sector Banks, Regional Rural Banks, and Cooperative Banks.
Farmers are also offered with 3% interest subvention for Rs 3 lakh short term crop loan on prompt repayment of the loan. Thus, the effective interest is 4% only 4 for the said crop loan.
The government has also provided NABARD an additional Rs 20,000 crore to finance district cooperative banks and cooperative societies.
The interest relief to the farmers for Rabi and Kharif crop will definitely help them to get through the aftermath of short-term problems faced due to demonetization.
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