Bonanza For Farmers As RBI Raises Collateral-Free Agriculture Loan Limit To Rs 2 Lakh
In a significant step to aid farmers, the Reserve Bank of India (RBI) has increased the limit for collateral-free agriculture loans from Rs 1.6 lakh to Rs 2 lakh per borrower. Announced during the bi-monthly Monetary Policy Statement for December 2024, RBI Governor Shaktikanta Das explained that the revision, the first since 2019, aims to address rising agricultural input costs and inflation, thus improving credit access for small and marginal farmers.
In a major move to support farmers, the Reserve Bank of India of Friday raised the limit for collateral-free agriculture loans from Rs 1.6 lakh to Rs 2 lakh per borrower. The move will enhance credit availability for small and marginal farmers.
While presenting the bi-monthly Monetary Policy Statement for December 2024, RBI Governor Shaktikanta Das said, “The limit for collateral-free agriculture loans was last revised in 2019. Taking into account the rise in agricultural input costs and overall inflation, it has been decided to increase the limit for collateral-free agriculture loans from Rs 1.6 lakh to Rs 2 lakh per borrower. This will further enhance credit availability for small and marginal farmers.”
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Source : News 18
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