India raises loan limit for farmers to ₹2 lakh, aiding cost burdens and boosting agricultural credit.

The Reserve Bank of India has raised the collateral-free loan limit for farmers from ₹1.6 lakh to ₹2 lakh, effective January 1, 2025, to help small and marginal farmers cope with rising costs. This move aims to improve credit accessibility and support agricultural growth, benefiting over 86% of farmers. The initiative complements the government's loan scheme offering loans up to ₹3 lakh at a 4% interest rate.

3 months ago
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