Agricultural Loans

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

The Reserve Bank of India (RBI) has enhanced the collateral-free loan limit for farmers from Rs 1.6 lakh to Rs 2 lakh, effective January 1, 2025, a move aimed at supporting small and marginal farmers amid rising input costs. The new directive instructs banks nationwide to waive collateral and margin requirements for agricultural and allied activity loans up to Rs 2 lakh per borrower. According to the agriculture ministry, the decision comes in response to the rising input costs and the need to improve credit accessibility for farmers. "This measure will significantly benefit over 86 per cent of farmers who are small and marginal landholders," the statement said. Banks have been instructed to implement the guidelines swiftly and ensure widespread awareness about the new loan provisions. The move is expected to facilitate easier access to Kisan Credit Card (KCC) loans and complement the government's Modified Interest Subvention Scheme, which offers loans up to Rs 3 lakh at a 4 per ce

Govt waives penalty, approves interest-free loan of FCV tobacco growers

The Ministry of Commerce & Industry have announced measures to support tobacco growers impacted by heavy rainfall, drought in Andhra Pradesh and Karnataka

Over 50% agricultural families in debt with average loan of Rs 74K in 2019

Over 50 per cent of agricultural households in the country were in debt with average outstanding loan per household at Rs 74,121 in 2019, says a survey conducted by National Statistical Office

Retail, agri loans grow in June as states begin to ease Covid-19 curbs

Loans to agriculture and allied activities showed an accelerated growth of 11.4 per cent in June 2021 as compared to 2.4 per cent in June 2020

We'd like to be seen as a full service new-age private bank: CSB Bank chief

In a Q&A, C V R Rajendran, MD & CEO, CSB Bank Ltd, dwells on how the lender turned around in FY20, after several years of losses

Agricultural loans worth Rs 590 bn went to 615 accounts in 2016: RTI report

Data from the RBI reveals that massive amounts have been given to people in the name of agricultural loans even during the UPA govt

Banks brace for high agri defaults, low credit offtake

Banks are bracing for high defaults in agriculture loans this financial year. While demonetization had already affected recovery, rumors of debt waiver in states where Assembly elections were held, have added to the defaults. This apart, drought in southern states like Karnataka and Tamil Nadu have further accentuated defaults.According to public sector banks, on a conservative basis, recovery of short term loans so far is around 20 per cent lower than that in last year. The impact of slow recovery is already visible in fresh offtake of loans. According to data from Reserve Bank of India, agriculture loan growth on a year-on-year basis, as on 20th January 2017 was around 8 per cent, against 13 per cent in the same period around January 2016. The agriculture loan growth is one of the lowest in the last three years. At Kolkata-based United Bank of India, recovery of short term Rabi loan has been around 20 per cent less. Against a recovery of around Rs 700-800 crore, this year, so far ...