RBI waives collateral security and margin requirements for agricultural loans including loans for allied activities upto ₹2 lakh per borrower.
Presently, the limit for collateral free on agricultural loans is ₹ 1.6 lakh. Keeping in view the overall inflation and rise in agriculture input cost over the years, RBI has decided to raise the limit for collateral free agricultural loans including loans for allied activities from the existing level of ₹ 1.6 lakh to ₹ 2 lakh per borrower.
Accordingly, banks with effect from 1st January 2025 have been advised to waive collateral security and margin requirements for agricultural loans including loans for allied activities upto ₹2 lakh per borrower.
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