December 2024

The loan limit was raised from 1.6 lakhs to lakhs rupees. This is included for allied activities too.

This acknowledges the impact of inflation and the increasing cost of agricultural inputs on farmers.

This enhances credit access especially for small and marginal farmers who constitute 86% of the sector.

Combined with Interest subvention scheme, offering loans upto 3 lakhs at a 4% effective interest rate, this policy strengthens financial inclusion.