- The Reserve Bank of India has announced to increase the collateral–free agriculture loans from Rs 1 lakh to Rs 1.6 lakh. This will enhance coverage of small and marginal farmers in the formal credit system.
- Presently the banks are mandated to give collateral free agriculture loans up to Rs 1 lakh. This limit of Rs 1 lakh was fixed in the year 2010. But the limit has been increased keeping in view the overall inflation and rise in agriculture input costs since then.
Point to remember:
- Limit for collateral free agricultural loans has been increased to?