Banking · Agricultural Credit Guidelines
According to the RBI guidelines on agricultural loans, what is the maximum loan limit up to which banks are mandated to waive margin requirements and collateral security?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Banks must obtain a third-party guarantee for all loans given to small and marginal farmers.
- 2The margin for agricultural loans is fixed at a mandatory 25 percent irrespective of the loan amount.
- 3Collateral security is mandatory for all agricultural loans above 50,000 to ensure bank safety.
- 4No margin and no collateral security is required for agricultural loans up to 1.6 lakh.✓
Correct answer
No margin and no collateral security is required for agricultural loans up to 1.6 lakh.
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