Inflation prompts India cenbank to raise agri loan limit

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Inflation prompts India cenbank to raise agri loan limit

^{Published on 2024-12-06 12:31:09 - Reuters}

India's central bank said on Friday it will raise the limit for collateral-free agriculture loans to 200,000 rupees ($2,364.15) in a bid to enhance access to formal credit for small and marginal farmers in the country.

The Reserve Bank of India (RBI) has increased the limit for agricultural loans against electronic Negotiable Warehouse Receipts (e-NWRs) from 75% to 85% of the value of the stored agricultural produce, effective immediately. This decision, announced on December 6, 2024, aims to address the challenges faced by farmers due to high inflation rates. The move is intended to provide farmers with greater access to credit, thereby helping them manage their finances better amidst rising costs. The adjustment in loan limits is part of broader efforts to support the agricultural sector, which has been under strain from economic pressures.

Read the Full Reuters Article at:
[ https://www.reuters.com/world/india/inflation-prompts-india-cenbank-raise-agri-loan-limit-2024-12-06/ ]

N@N

Inflation prompts India cenbank to raise agri loan limit