​RBI Increases Collateral-Free Agricultural Loan Limit

On 14th December 2024, to support the agricultural sector and address rising input costs, the Reserve Bank of India announced an increase in the limit for collateral-free agricultural loans, including loans for allied activities.

  • The limit for collateral-free agriculture loans was last revised in 2019.

Key Points

New Loan Limit: Collateral-free loans for farmers will increase from Rs 1.6 lakh to Rs 2 lakh.

Effective Date: From 1st January 2025.

Complementary Measures: The new loan scheme aligns with the government’s Modified Interest Subvention Scheme, which offers loans up to Rs. 3 lakh at a reduced interest rate of 4%.

Instructions to Bank

  • Waive ....

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