Collateral-free agriculture loan: The collateral-free agriculture loan limit has been increased from Rs 1.6 lakh to Rs 2 lakh. Small farmers will benefit from this decision taken in RBI MPC. Meanwhile, the interest rate limit for Foreign Currency Non-Resident (FCNR) deposits has been increased by 200 basis points.
The Reserve Bank of India has raised the collateral-free loan limit to Rs 2 lakh. This decision was taken in the Monetary Policy Committee of RBI. RBI Governor Shaktikanta Das announced this decision on Friday.
At present, the mortgage-free agricultural loan limit is Rs 1.6 lakh. It has been raised to Rs 2 lakh. That is, a person can get an agricultural loan of up to Rs 2 lakh without the need to take any mortgage.
This decision of RBI will benefit small farmers. More loans can be used for agricultural activities.
The mortgage-free farm loan limit was last revised in 2019. The limit has not been revised since then Keeping in view the rise in agricultural costs and overall inflation, it has been decided to raise the mortgage-free agricultural loan limit from Rs 1.6 lakh to Rs 2 lakh. RBI Governor Shaktikanta Das said in a press conference today that small and micro farmers will get more credit opportunities.