The cabinet chaired by Prime Minister gave approval to extend repayment for standard short-term loans up to Rs. 3 lakhs advanced for agriculture and allied activities by banks which is due between 01.03.2020 and 31.08.2020 with continued benefit of 2% interest Subvention (IS) to banks and 3% Prompt Repayment Incentive (PRI) to farmers. The extended repayment date is upto 31.08.2020. The extension shall help farmers to repay/renew such loans upto the extended repayment date 31.08.2020 at 4% per annum interest without attracting any penalty and also help them to avoid travel to bank for such renewal in COVID-19 pandemic. The government provides concessional Standard Short-Term Agri-loans to farmers through banks with 2% per annum interest subvention to banks and 3% additional benefit on timely repayment to farmers thus, providing loans upto Rs. 3 lakhs at 4% per annum interest on timely repayment. In view of difficulties faced by the farmers and people subject to repayment of short-term loans the abovementioned step is taken. Reddy & Reddy Law Firm has a team of well expert advocates specialized in matters pertaining to Banking and Finance Laws.