The Maharashtra Cabinet on Thursday cleared a proposal to provide crop loans up to ₹3 lakh at zero interest rate. Under the Dr. Punjabrao Deshmukh Interest Concession Scheme, farmers who repay their interest of loans up to ₹3 lakh get interest subsidy.
The decision was taken at the State Cabinet meeting chaired by Chief Minister Uddhav Thackeray. Finance Minister Ajit Pawar, while presenting the State budget for 2021-22, had announced that crop loans up to ₹3 lakh will be charged at zero per cent interest. The State government was earlier extending interest concession of 3% to non-defaulters with crop loans up to ₹1 lakh and 1% concession in interest rate if crop loans between ₹1 lakh and ₹3 lakh was repaid on time. The scheme was aimed at encouraging non-defaulters.
Under the new scheme, those who repay crop loans on time will get 2% additional interest concession for a short-term crop loan between ₹1 lakh and ₹3 lakh. The State government will extend a total concession of 3%.
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The Central government too encourages timely repayment of crop loans with 3% interest concession on short-term crop loans up to ₹3 lakh.
Combining both the schemes, farmers will get 6% as total interest concession, ensuring short-term crop loans up to ₹3 lakh at zero interest rate.