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RBI raises collateral-free agricultural loan limit to Rs 2 lakh

The Sunday Guardian

|

December 15, 2024

NEW DELHI The Reserve Bank of India (RBI) has announced an increase in the limit for collateral-free agricultural loans will be increased from Rs 1.6 lakh per borrower to Rs 2 lakh, effective from January 1, 2025.

- CORRESPONDENT

RBI raises collateral-free agricultural loan limit to Rs 2 lakh

According to the Ministry of Agriculture and Farmers Welfare, this decision is aimed at addressing the rising input costs and the growing financial challenges faced by farmers, particularly amid inflationary pressures on agricultural inputs.

The new policy allows farmers to access loans for agricultural activities, including allied sectors, without the need to provide collateral or meet margin requirements.

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