In the wake of lockdown due to ongoing Covid-19 pandemic, the Government of India has extended the benefit of two per cent interest subvention (IS) to banks and three per cent prompt repayment incentive (PRI) to all farmers upto May 31, 2020 for all short-term crop loans upto Rs 3 lakh given by banks which have become due or are becoming due between March 1, 2020 and May 31, 2020 upto the extended period at four per cent interest per annum on timely repayment without attracting any penalty.

This was stated by the Ministry of Agriculture and Farmers’ Welfare.

Moreover, due to the restrictions imposed on movement of people and difficulty in timely sale and receipt of payment of their produce, many farmers are not able to travel to bank branches for the repayment of their short-term crop loan dues, which will fall due during the aforementioned period.