RBI increased limit for collateral-free agricultural loans from 1.6 lakh to 2 lakh rupees.
The Reserve Bank of India has decided to increase the limit for collateral-free agricultural loans from 1.6 lakh to 2 lakh rupees.
It will be effective from 1st January next year.
It will enhance credit accessibility, particularly for small and marginal farmers.
This new directive instructs banks to waive collateral and margin requirements for agricultural and allied activity loans up to Rs 2 lakh per borrower.
It will facilitate easier access to Kisan Credit Card (KCC) loans and complement the government’s Modified Interest Subvention Scheme.
It will allow farmers to invest in agricultural operations and improve their livelihoods.
This initiative will enhance financial inclusion in the agricultural sector.
