Current Affairs - Finance - Discussion

The Reserve Bank of India (RBI) has increased the collateral-free agricultural loan limit from ₹1.6 lakh to ₹2 lakh, effective January 1, 2025. This initiative is aimed at benefiting farmers and allied activities by reducing borrowing costs and improving credit access, especially for small and marginal farmers. The increase in loan limits also enhances the uptake of Kisan Credit Card (KCC) loans, allowing farmers to avail loans up to ₹3 lakh at a 4% effective interest rate. This move supports agricultural growth and financial inclusion.