The government has advised banks to extend the interest subversion (IS) and prompt repayment incentive (PRI) benefit to all the farmers whose accounts become due during March 1 to May 31 period.

“Due to restrictions imposed on the movement of people, many farmers are not able to travel to bank branches for payment of their short term crop loan dues...to address this problem being faced by farmers, the extension of Interest Subvention (IS) and Prompt Repayment Incentive (PRI) benefit up to 31st May, 2020 on the short term crop loans upto Rs.3 lakh which are due up to 31st May, 2020,” said the statement by the agriculture ministry.

The move is aimed at short term crop loans of up to Rs 3 lakh in order to ensure that farmers do not have to pay penal interest and continue to get the benefits from the interest subvention scheme declared as part of COVID-19 regulatory package.

Further, to improve the conditions of farmers the government also has continued the availability of two percent IS and three percent PRI till May 31 or till the repayment date.

The government gives concessional crops loans via banks along with two percent interest subvention to latter and additional benefits to farmers on timely repayment.

Earlier, RBI had granted a three-month moratorium on all retail loans on payment of instalments falling due between March 1, 2020 and May 31, 2020.