SHG, farmers get a three-month respite – The New Indian Express

By express news service

BENGALURU: To provide much needed relief to farmers and Self Help Groups (SHG) members who are struggling to cope with the COVID-19 crisis and lockdown to contain the spread of Coronavirus, the state government has postponed three months repayment of loans obtained through cooperative societies.

On Friday, the state cabinet headed by Chief Minister BS Yediyurappa also decided to extend the deadline to benefit from the interest waiver on medium and long-term agricultural loans for farmers. The deadline for farmers to pay the principal amount to avail the benefit of the scheme has been extended from March 31 to the end of June.

The state government, through cooperative societies, provides interest-free crop loans of up to Rs 3 lakh and Rs 3 lakh to Rs 10 lakh in the medium and long term for agricultural purposes at three percent interest and also provides loans to women that are part of SHG. According to the government order issued on Friday, he had received many requests from farmers and SHG members expressing difficulties in paying loan installments due to the current situation.

In February this year, the government had announced the waiver of the Rs 466 crore interest component in a Rs 560 crore loan used by more than 95,000 farmers from primary agricultural cooperatives and rural development banks for asset creation and power generation. from income.

By mid-March, the farmers had repaid the principal amount of Rs 60 crore and the opposition Congress and JDS had raised the issue in the legislative council and demanded the extension of the deadline to avail the benefit of the tax exemption scheme. interests.

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