Big gift for farmers before new year

Business Business: The Reserve Bank of India (RBI) has given a big help to the farmers. In view of the increase in agricultural costs, the central bank has increased the limit of unsecured loans for farmers to Rs 200,000 crore. Earlier the maximum limit was Rs 160,000. The Agriculture Ministry said in a statement on Saturday that the new restrictions will be effective from January 1, 2025. Billions of farmers are expected to benefit from this scheme.

RBI started giving unsecured loans to the agricultural sector in 2010. Later, the central bank announced that it would give 100,000 crores without guarantee. In 2019, this limit was increased to Rs 160,000. Now it has increased once.

Due to rising inflation in the agricultural sector, small and medium farmers faced many problems. This affected their farming. These farmers will benefit from the increased limit of the Reserve Bank. The resources of the farmers were very limited. In such a situation, farmers benefit from this unsecured loan.

This measure will improve access to credit, especially for small and marginal farmers. “They benefit from lower credit costs and the elimination of additional requirements.”

The central bank’s decision is in line with government initiatives such as the revised interest subsidy scheme. It provides farmers an interest rate of 4% on a loan of Rs 300,000. These big gifts were taken for farmers before the new year to further strengthen India’s rural economy.