Mumbai, December 6, 2024: The Reserve Bank of India (RBI) has delivered good news to small and marginal farmers. RBI Governor Shaktikanta Das announced an increase in the limit for collateral-free agricultural loans from ₹1.6 lakh to ₹2 lakh. He stated that this decision was made considering farmers’ investment needs, inflation, and other economic factors.
With this revision, farmers will be able to access greater financial assistance for agricultural activities. The RBI clarified that the decision aims to ease the burden of investment costs and improve productivity. Previously, in 2019, the loan limit was increased from ₹1 lakh to ₹1.6 lakh.
The revised limit is expected to more effectively meet the financial requirements of small farmers across the country. Experts believe this decision will provide immediate relief to farmers, reflecting the growing emphasis on the agricultural sector’s importance.
