Goa Government has issued an Interest Subsidy on Loans for Agriculture and Allied Activities

Feb 22, 2021 | by Avantis RegTech Legal Research Team

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Industry Specific Compliance

The Agriculture Department of Goa on February 18, 2021 has issued the Interest Subsidy on Loans for Agriculture and Allied Activities. 

The following are the Guidelines under the Scheme: 

• The scheme will remain operative for a period of five years from April 01, 2020 to March 31, 2025 and will be reviewed for continuation on completion of five years.

• Short term crop loan up to Rs. 3.0 lakh is eligible for Interest subvention under Government of India scheme.

• The Government of Goa will provide interest subsidy of 4% to those farmers who repay their loans promptly. 

• The Government of Goa will provide interest subsidy to the extent of the difference between rate of interest of 4% and the normal rate of interest charged by the eligible banks as per their policy, subject to a maximum of 8%.

• The interest subsidy will be available on both short term and long term agricultural loans.

• The interest subsidy claims must be submitted to the Government of Goa by banks in respect interest applied and recovered, on half yearly basis. Banks should not claim interest subsidy on notionally accrued interest on agricultural loans outstanding, even if the interest has not become due to be paid. 

• Recovery of loan is the responsibility of the banks and there will not be any Government guarantee for the loans provided by the banks under this scheme. 

• Interest subsidy will be released on half yearly basis. 

[Notification No. 3/5/EXT/137/2020-21/D.Agri/893]

 


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