In a positive response to Gujarat farmers’ inability to repay owing to lockdown due to novel coronavirus COVID-19, the Central Government has extended the last date of repayment of short-term bank loans for farmers of Gujarat by another three months, till August 31, 2020.
While the farmers have to normally pay 7% interest, they have to now pay no interest with the Centre paying 4% and the State 3% interest for the extended period. This consideration is estimated to help about 24 lakh farmers of Gujarat.
This will cost the Gujarat Government an additional burden of Rs.160-crore. This well help the farmers seek fresh loan for the impending kharif crop.