Farmers will be able to avail a loan of Rs 2 lakh without pledging their property
The limit of collateral free loan has been increased to Rs 2 lakh. The Reserve Bank announced this on Saturday. Till now farmers used to get collateral free loan of Rs 1.60 lakh. The increased limit will be applicable from January 1, 2025. Collateral free is the loan which banks give without pledging anything or without any guarantee. According to the Ministry of Agriculture, this decision has been taken in view of the rising cost and the need to improve loan accessibility for farmers. The ministry said that this will greatly benefit more than 86% of small and marginal farmers.