The Reserve Bank of India vide its circular dated 4th June 2020 has decided to continue the facility of interest subvention of 2 per cent and prompt repayment incentive of 3 percent allowed to farmers till August 31, 2020
RBI in its earlier circular dated 23rd May 2020 has permitted all lending institutions to extend moratorium by another three months (i.e., upto August 31, 2020) and in order to ensure that farmers do not pay higher interest during the extended moratorium period, RBI has decided to continue the availability of 2% IS and 3% PRI to farmers for the extended period of repayment upto August 31, 2020 or date of repayment, whichever is earlier.
This benefit will be applicable to all short term loans for Agriculture and Animal Husbandry, Dairy and Fisheries (AHDF) upto ₹3 lakh per farmer (upto ₹2 lakh for AHDF farmers).
Click here to read the Circular.
