Bhubaneswar, November 13, 2017: Maintaining that hisGovernment has already initiated
proactive measures to provide relief to the farming community suffering
from the crop loss promptly, Chief Minister Naveen Patnaik on Monday sought
Prime Minister Narendra Modi’s intervention to keep interest rate on Medium
Term (Conversion) loans at par with the crop loans.
The CM also requested the PM to extend interest incentive of
three percent also extend the interest incentives of three percent admissible
on crop loans to the Medium Term (Conversion) loans.
three percent also extend the interest incentives of three percent admissible
on crop loans to the Medium Term (Conversion) loans.
“As a part of the package announced for the farming
community, it has been decided to convert the crop loans advanced during
Kharif, 2017 season in the affected areas as Medium Term (Conversion) loans. In
case of crop damage between 33% and 5000, the crop loans can be converted into
Medium Term (Conversion) loans repayable within a period of two years with a
moratorium of one year,” the Chief Minister said in a letter to the PM.
community, it has been decided to convert the crop loans advanced during
Kharif, 2017 season in the affected areas as Medium Term (Conversion) loans. In
case of crop damage between 33% and 5000, the crop loans can be converted into
Medium Term (Conversion) loans repayable within a period of two years with a
moratorium of one year,” the Chief Minister said in a letter to the PM.
“Similarly, where the crop damage is 50% and more, the
conversion facility of the crop loans can be allowed for a maximum period of
five years with one year moratorium. The Union Government provides interest
incentive at 3 percent to the prompt paying farmers in respect of crop loans,
which is not made available in case of conversion of such crop loans in the
event of occurrence of natural calamities,” said Patnaik.
conversion facility of the crop loans can be allowed for a maximum period of
five years with one year moratorium. The Union Government provides interest
incentive at 3 percent to the prompt paying farmers in respect of crop loans,
which is not made available in case of conversion of such crop loans in the
event of occurrence of natural calamities,” said Patnaik.
As a result, the interest rate on the converted loans remains
at a higher rate, which is at present 11.20%.
at a higher rate, which is at present 11.20%.
Similarly, the interest on crop loans is not subsidized as
interest subvention for the same is not available. “In my opinion, when crop loans are converted
into Medium Term loans, the interest rate should remain at par with the crop loans. Similarly, the incentive made
available to the prompt paying farmers for crop loans should also be extended
to the Medium Term (Conversion) loans to provide relief to the farmers affected
due to drought and pest attack,” said the CM.
interest subvention for the same is not available. “In my opinion, when crop loans are converted
into Medium Term loans, the interest rate should remain at par with the crop loans. Similarly, the incentive made
available to the prompt paying farmers for crop loans should also be extended
to the Medium Term (Conversion) loans to provide relief to the farmers affected
due to drought and pest attack,” said the CM.
“Therefore, I request your intervention in the matter
to keep the interest rate on the
Medium Term (Conversion) loans
at par with the crop
loans and also extend the
interest incentive of three percent
admissible on crop
loans to the Medium Term (Conversion) loans, added the CM.
to keep the interest rate on the
Medium Term (Conversion) loans
at par with the crop
loans and also extend the
interest incentive of three percent
admissible on crop
loans to the Medium Term (Conversion) loans, added the CM.