RBI Loan for Farmers : Farmers have received excellent news. The Reserve Bank of India has presented a significant gift to farmers for the New Year. RBI has raised the maximum loan amount accessible to farmers without collateral to Rs 2 lakh. Previously, this limit was Rs 1.60 lakh. Millions of farmers in the country will benefit from this initiative.
RBI has raised the maximum loan amount accessible to farmers
In a move to assist farmers, the Reserve Bank of India (RBI) has raised the collateral-free loan limit for farmers from Rs 1.6 lakh to Rs 2 lakh effective January 1, 2025. This action has been implemented to support small and marginal farmers during the increasing expenses of agriculture. We would like to inform you that in 2010, the RBI set a cap of one lakh rupees for the agricultural sector without requiring any guarantee.
Subsequently, in 2019, it was raised to Rs 1.6 lakh. The updated directive calls on banks nationwide to eliminate collateral and margin prerequisites for loans related to agriculture and allied activities, capped at Rs 2 lakh for each borrower.
The decision aims to decrease the increasing expenses and enhance loan accessibility
The Agriculture Ministry has stated that this decision aims to decrease the increasing expenses and enhance loan accessibility for farmers. The announcement indicated that this action will significantly aid over 86% of small and marginal landholder farming individuals. Banks have been directed to promptly adopt the guidelines and promote extensive awareness regarding the new loan policies. This action aims to enable convenient access to Kisan Credit Card (KCC) loans and will enhance the government’s updated interest subsidy program. Through this program, the government offers loans of up to Rs 3 lakh with an effective interest rate set at 4%.