Nowhere is the interest of farmers taken into account when the central government decides to suspend the repayment of 2% interest on crop loans to banks. Therefore, by resuming this interest repayment, the Center should provide relief to farmers in general and district cooperative banks, Chief Minister Uddhav Thackeray said. The Chief Minister wrote to the Union Minister for Agriculture, Narendra Singh Tomar, about the Center’s recent decision to stop interest repayments and demanded that repayments be resumed. More than 70 lakh farmers in the state are likely to be affected by the closure of interest repayments.
Read also >>> Accused of serial bomb explosions in Mumbai in 1993, in preventive detention for 14 days; He was on the run for 29 years.
A State Level Bankers Committee meeting held today at Sahyadri Guest House also decided to resume this interest repayment. The Central Government has issued a circular dated March 28, 2022 indicating that the reimbursement of the 2% interest that will be granted to banks for the disbursement of loans for short-term crops will be suspended and that this benefit will not will be available from the current financial year. Therefore, banks will not get 2% interest repayment from the central government on crop loan distribution in the current year, which will put district cooperative banks in financial difficulties and negatively affect loan distribution. for crops, the chief said. Minister Uddhav Thackeray.
Read also >>> Raj Thackeray will be admitted to Lilavati Hospital, there is a possibility of surgery
The big question before us is how to implement the current scheme of up to Rs 3 lakh at zero per cent interest rate for farmers who are repaying their regular crop loans. Originally, the purpose of launching this interest payment scheme was to provide crop loans to farmers at favorable rates to district cooperative banks and nationalized banks. Farmers rely heavily on these banks for loans. According to a central government circular, banks cannot disburse loans above 7 percent. However, since the cost of raising funds for district central cooperative banks is higher than that of commercial banks, the central government will have to bear the financial loss due to the closure of the 2 percent interest subsidy by the central government, the chief said. Minister Uddhav Thackeray.
Also Read >>> NDA 142 Unit Training Completed; 321 graduates swear to defend the country
As per the Central Government’s earlier instructions, if banks were to provide crop loans of up to Rs. In this regard, the state government had decided that banks should distribute crop loans to farmers at an interest rate of 6 percent instead of 7 percent, and for this the state government would pay 1 percent interest to farmers. banks. Therefore, for the disbursement of loans for crops to banks at a rate of 2% from the Central Government, a rate of 2.5% from the State Government to District Banks and an interest rate of 1% to banks In commercial businesses, farmers took out crop loans of up to 3 lakhs at an interest rate of 6%. If the loan is paid regularly, the loan is available at a rate of zero percent as mentioned above.
Also read >>> VIDEO:… And Udayan Raje bought all the calendars, books of the girl on the street; Showers of thanks in viral video
As a result of this decision by the central government, the banks will not get the 2% interest rate back, which will result in a loss of interest for the banks and the burden will fall on the farmers. The prices of inputs used for crop production are constantly increasing and the cost of producing crops is increasing. All these factors will negatively affect the income of farmers. The Chief Minister also demanded that the Central Government resume the 2% interest repayment scheme for crop loans, taking into account the financial interests of farmers.