RBI raises collateral-free agricultural loan limit to Rs 2 lakh to aid farmers

The Reserve Bank of India (RBI) has raised the collateral-free loan limit for farmers from Rs 1.6 lakh to Rs 2 lakh, effective January 1, 2025, to help small and marginal farmers manage rising input costs. The new policy waives collateral and margin requirements for loans up to Rs 2 lakh, benefiting over 86% of farmers.