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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, says RBI Governor Shaktikanta Das.
The RBI’s move will enhance credit availability 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.”
