Loan against Agri-produce : Limit enhanced to Rs.75 lakh
Biznextindia : RBI has enhanced loan limit under priority sector lending to agriculture sector to Rs.75 lakh per borrower against pledge/hypothecation of agricultural produce. The limit was Rs. 50 lakh earlier.
“With a view to encouraging farm credit to individual farmers against pledge/hypothecation of agricultural produce, it has been decided to enhance the loan limit under priority sector lending (PSL) from ₹50 lakh to ₹75 lakh per borrower against the pledge/hypothecation of agricultural produce backed by Negotiable Warehouse Receipts (NWRs)/electronic NWRs(e-NWRs) issued by warehouses registered with the Warehousing Development and Regulatory Authority (WDRA). For other Warehouse Receipts, the loan limit for classification under PSL will continue to be ₹50 lakh per borrower” RBI Governor said during his monetary policy address.
On the other hand, the dispensation under which bank lending to registered NMFCs (Non-Banking Financial Institutions) for on-lending to Agriculture, MSME and housing is classified as Priority Sector Lending (PSL), is further extended till September 30, 2021.