Punjab Chief Minister Parkash Singh Badal has directed the Cooperation department to extend the last date for repayment of loan taken by the farmers from Primary Agricultural cooperative Societies and Primary Agricultural Development Banks till July 31.
"An order to this effect was passed by Registrar, Cooperative Societies, Punjab Arunjit Singh Miglani, here today," an official spokesperson said.
This decision shall prove to be a boon for the farmers of state by giving them more time to repay their loans and avoid imposition of penal interest, which would have been levied on farmers who did not repay the loan by June 30, 2016.
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Pertinently, Central Cooperative Banks of the state lend nearly Rs 6,500 crore per crop to the farmers of Punjab as short-term crop loan through the Primary Agricultural Cooperative Societies.
The Primary Agricultural Development Banks have lent nearly Rs 2,400 crore to the farmers of Punjab as long term credit.
The step by the state government was an important concession to the farmers, he said.
As a result of this extension in time, a large number of farmers shall be saved from becoming defaulters and shall remain eligible to get loan for the next crop, if they pay the due loan by July 31, 2016, he said.
