Gandhinagar (Information): In a compassionate decision for the benefit of farmers, Gujarat Chief Minister Vijay Rupani has extended the interest waiver on repayment of crop loan from the cooperative sector till June 30, 2021 looking to crisis owing to second wave of the coronavirus Covid-19.

According to NABARD?s Credit Policy, the lenders in the cooperative sector provided short term crop loan at 7 (seven) per cent interest on which the Central Government provided 3 (three) per cent rebate and the Gujarat Government 4 (four) per cent rebate for timely repayment. The objective is to charge no interest on loans to encourage the farmers timely repayment.

The last date of repayment expired on March 31, 2021 for those farmers who had taken loan from the cooperative sector between April 1, 2020 and September 30, 2020. It was realized that many farmers were unable to return the loan due to the extraordinary crisis owing to the spectre of the coronavirus. Hence the Gujarat Government decided to extend the period of repaying the loan till June 30, 2021.

The Gujarat Government decided to reimburse the Central Government?s 3 (three) per cent interest rebate as well as Gujarat Government?s 4 (four) per cent interest rebate on payment made during period from April 1, 2021 to June 30, 2021, in case the farmers return the loan the recovery amount, whichever is earlier.