2024-12-06 11:50:05 :
Mumbai (Maharashtra) [India]December 6 (ANI): The Reserve Bank of India (RBI) on Friday increased the unsecured loan limit for agricultural farmers from $166,000 $200,000 per borrower.
In his speech after the Monetary Policy Committee (MPC) meeting, Governor Shaktikanta Das said that “it has been decided to increase the unsecured farm loan limit in view of the rising cost of farm inputs and general inflation”. 160 million to Rs 200,000 per hour; this will further enhance the availability of credit to small and marginal farmers. ”
Apex Bank will issue a separate notice soon to inform about the enhancement plan for unsecured loans.
Unsecured commercial loans are a financing system that allows farmers to obtain loans without using assets as collateral.
The central bank last revised the unsecured farm loan limit in 2019, when it raised the limit from Rs 10 lakh. 1 Lakh Rs 1.6 Lakh.
The Department of Financial Services also waived processing, documentation, inspection and bookkeeping charges and all other service charges for KCC/crop loans in February 2019 up to a maximum of Rs. Three lakh rupees, focusing on the hardship and financial distress of small and marginal farmers.
In early 2014, the Reserve Bank of India (vide notification dated June 27, 2014) advised banks and financial institutions to include obtaining Credit Information Reports (CIRs) from one or more Credit Information Companies (CICs) in their credit assessment process/loan policies Appropriate provisions are made so that credit decisions are based on the information available in the system.
The Kisan Credit Card (KCC) scheme ensures easy access to credit for all types of farmers including homesteaders, sharecroppers, sharecroppers, etc.
The KCC scheme provides for the issuance of ATM-enabled RuPay debit cards with facilities such as one-time documentation, built-in cost escalation within limits and any number of withdrawals within limits, among others.
The KCC facility itself is an overdraft facility and withdrawals can be made through RuPay debit cards up to the approved limit. (Arnie)
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