Quick Summary
Government Boosts Credit Flow to the Agriculture Sector through Targeted Policy Measures Measures include raising the limit of collateral-free agricultural loans to Rs 2 lakh, expanding Kisan Credit Card coverage, providing 7% interest subvention, and PM- Dhan Dhaanya Krishi Yojana to strengthen cr
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Broadcasts
- Daily E-Newsletter
- Unlimited News Access
BEST VALUE
2 YEAR PLAN
3,499
(Inclusive of GST)
1 YEAR PLAN
1,999
(Inclusive of GST)
Buy CCI PRO Now
Already a PRO member? Login here for an ad-free experience.
The limit for collateral-free short-term agricultural loans, including those for allied activities, has been raised to £2 lakh per borrower.
The increased limit of £2 lakh for collateral-free agricultural loans came into effect from 1 January 2025.
Small and marginal farmers, who constitute over 86% of the agricultural sector, are expected to benefit the most due to reduced borrowing costs and the removal of collateral requirements.
Short-term agricultural loans provided through Kisan Credit Cards under the Modified Interest Subvention Scheme are offered at a concessional interest rate of 7%.
Yes, farmers who repay their short-term agricultural loans promptly can receive an additional 3% incentive, bringing the effective interest rate down to 4%.
The PM Dhan Dhaanya Krishi Yojana is a new scheme launched to ensure adequate availability of long-term and short-term credit, especially in districts with low agricultural credit disbursement.
CAclubindia
