Whrrl’s Post

🌱 Empowering Farmers: Enhanced Credit Access for Agriculture 🌾 In a significant step to support our farmers and boost agricultural growth, the Reserve Bank of India (RBI) has increased the limit for collateral-free agricultural loans from ₹1.6 lakh to ₹2 lakh per borrower. This revised limit also includes loans for allied activities, ensuring broader financial inclusion for the farming community. Key Highlights: ✔️ Revised Limit: ₹2 lakh per borrower. ✔️ No Collateral or Margin Requirements: Enhanced ease of access to credit. ✔️ Implementation Deadline: Banks are to adopt these changes by January 1, 2025. This progressive move aligns with the rising agricultural input costs and inflation, addressing the evolving needs of farmers. Banks have been urged to prioritize implementation and ensure adequate publicity for these changes to maximize impact. #Agriculture #FinancialInclusion #FarmersFirst #RBIUpdates Pravesh Goel Vijay Singh Rathore Hemendra Chauhan Abhishek Gupta, CA CA Rajat Singla Nucleus Advisors Soonicorn Ventures

The Reserve Bank of India (RBI) has just raised the collateral-free agricultural loan limit from ₹1.6 lakh to ₹2 lakh, effective January 1, 2025. This move aims to support small and marginal farmers, who make up over 86% of the sector, by providing them with easier access to credit and reducing their borrowing costs. The new directive instructs banks to waive collateral and margin requirements for agricultural and allied activity loans up to ₹2 lakh per borrower. This is expected to increase the uptake of Kisan Credit Card (KCC) loans, allowing farmers to invest in agricultural operations and improve their livelihoods. MyGov India Ministry of Agriculture & Farmers Welfare, Government of India #RBI #Agricultural #CollateralFreeLoan #FarmersBenefit #RuralDevelopment

80% of India's farmers are small or marginal. These small farmers hold 86.1% of the total agricultural land. Still, their incomes remain stagnant. Even though there has been an increase in agricredit in recent years, not even 20% has reached these small farmers. Why are these small farmers left out? Institutional credit is based on the amount of land they possess. These small farmers can only grow one crop due to limited resources and cannot repay loans monthly. Most of the crops have a cycle between 2-3 months. Therefore, there is no assured income at the end of the month. Smallholder farmers are also forced to make quick decisions based on adverse weather and price surges. They end up taking more risks than farmers who have large land holdings. Their farming decisions have a significant impact on their choices and livelihoods. Flexibility in repayment terms is essential for these farmers. At Rang De, the communities that we serve do not have fixed salary days; therefore, we don’t impose a fixed loan repayment day. These small farmers can choose their loan amount, duration, and repayment cycle, enabling them to build a sustainable income. When investing in Rang De, you invest in a small farmer left out of formal financial institutions. I invite you to visit our RBI-regulated P2P social investing platform to learn more. Adding a link in the comments. #SocialInvestment #RangDe #AffordableCreditRevolution

**🌾 Who are Agriculture Field Officers (AFOs), and Why are They Essential? 🌾 In India, the agricultural sector plays a pivotal role in shaping our economy, and one key player in this ecosystem is the Agriculture Field Officer (AFO). These specialized banking professionals are vital in ensuring that farmers and agribusinesses have access to the financial resources they need to thrive. * 💼 Key Responsibilities of an AFO: Promoting agricultural loans, such as crop and equipment loans. Processing loan applications and ensuring compliance with banking regulations. Conducting field visits to assess the progress of agricultural activities. Providing financial guidance to farmers on banking products and government schemes. Liaising with government agencies to facilitate access to subsidies. Ensuring loan recovery and supporting sustainable rural development. *🚜 Why AFOs Matter: AFOs play a crucial role in boosting agricultural productivity, mitigating risks for banks, and empowering rural communities. Their work is not just about lending money; it's about fostering growth, innovation, and resilience in India's agricultural landscape. As we continue to work towards a stronger and more inclusive agricultural economy, the role of AFOs becomes even more significant. They are the backbone of rural financial services, and their efforts contribute immensely to the growth of our rural economy. 🌱 Let's appreciate the efforts of these unsung heroes who work tirelessly to support our farmers and drive agricultural growth! 👏 #Agriculture #RuralDevelopment #AgricultureFieldOfficer #Farming #Banking #RuralEconomy #FinancialInclusion #Agribusiness #India

Invisible Books- Visible Stakes In India, the agricultural sector serves as a crucial backbone of the economy, but at its core lie unwritten balance sheets and informal financials of farmers. These opaque records influence the decisions of numerous entities across financial, political, and socio-economic realms. While formal documentation like profit and loss statements often garners the spotlight in other industries, the rural agricultural sector relies on invisible ledgers. These undocumented financials have vast consequences, affecting policies, lending practices, and even social standing. Enclosed is in-depth exploration of entities that are directly or indirectly impacted by these unwritten financials, highlighting their relevance to India’s rural economy and agriculture sector #farmers #Agriculture #credit #banking #agricredit #farming #rural #stakeholders #india #balancesheet #financials #farm #agrifinance #risk #account #kcc #crop #agribusiness #digital #learning #india #agriculture #credit #farmer #farmerlife #agritech #fintech #bankingandfinance #finance

🌾 Lending to Agriculture Sector: Opportunities/Challenges 🌾 Lending to agriculture sector is crucial for India’s rural economy, but it comes with significant challenges that often lead lenders to treat it as a high-risk profile. Here’s why: 1. Weather Dependency: Agriculture relies heavily on monsoons, making incomes unpredictable. 2. Price Volatility: Crop prices fluctuate due to market and policy changes, affecting loan repayments. 3. Fragmented Landholdings: Small farms struggle with low productivity and scaling. 4. Limited Credit Histories: Many farmers lack formal financial records or collateral, increasing lending risk. 5. Political and Policy Risks: Loan waivers and subsidies can create a moral hazard, leading to higher NPAs. 6. Income Dependency: Many farmers have no diversified income sources, increasing default risks in bad crop cycles. 7. Market Access Issues: Inefficient supply chains and middlemen reduce farmers’ profits, complicating repayments. 8. Land Ownership Disputes: Unclear land titles make it difficult for banks to secure collateral. Why Lenders Are Cautious: High default rates, policy risks, and regulatory pressures make agriculture lending a cautious profile. The sector’s thin profit margins and uncertain repayments further deter traditional banks. The Path Forward: • Tech-driven credit assessments using real-time data on weather and crop cycles. • Risk-sharing models with government and insurance partnerships. • Microfinance and collective lending models to increase access for underserved sector. With the right approach, we can de-risk agriculture lending, empower farmers, and drive long-term sustainable growth in India’s rural economy. 🌱💸🌱 #AgricultureLending #RiskManagement #RuralEconomy #FinancialInclusion #SustainableGrowth #IndiaAgriculture

#FPO/C #FPO/C have not shown promising results in improving the livelihoods of small farmers, but their impact has been uneven across India. #FPO/C, through collective action, have increased market access, improved input availability and increased the income of small farmers. Has not been able to increase. Better institutional support, capacity building and stronger market integration are needed to deliver full benefits to smallholder farmers. Policy makers should focus on strengthening the administrative structures of #FPO/C, increasing access to financial services and greater inclusion of marginalized groups. #FPO/C interventions have the potential to transform Indian agriculture, but only with sustained investment in their development and functionality. However, many #FPO/C struggle with governance issues, lack of market linkages and inadequate technical and financial capacity. #Agriculture and #Allied #Sector

𝗥𝗶𝘀𝗶𝗻𝗴 𝗙𝗮𝗿𝗺 𝗟𝗼𝗮𝗻 𝗗𝗲𝗳𝗮𝘂𝗹𝘁𝘀 𝗶𝗻 𝗜𝗻𝗱𝗶𝗮 𝗔𝗺𝗶𝗱 𝗪𝗲𝗮𝗸 𝗥𝘂𝗿𝗮𝗹 𝗘𝗰𝗼𝗻𝗼𝗺𝘆 India's top private lenders report increasing farm loan defaults due to unpredictable weather and rising agricultural costs, impacting rural borrowers. In the June quarter, major private banks saw higher bad loan additions, driven by agriculture and microfinance loans. More than 40% of India's population relies on agriculture, hit by rising temperatures and patchy monsoons. Despite government subsidies, non-performing farm loans remain high at 6.5%. #finance #news #Agriculture #RuralEconomy #LoanDefaults Source:- https://lnkd.in/dZF3wGYQ

📢 Enhancing Agri-Credit Accessibility: Finance Ministry Sets ₹27.5 Lakh Crore Target for FY25 🌾💰 The Government of India has raised the agriculture credit target to ₹27.5 lakh crore for FY25, marking an 11% increase from the previous year. This move is part of the ongoing effort to improve the availability of loans for farmers and address regional disparities in credit flow. Key Highlights: ✅ Banks are now encouraged to align loan approvals with the Gross Value Added (GVA) of crops, addressing regional imbalances. ✅ ₹16 lakh crore is earmarked for short-term crop loans, while ₹11.5 lakh crore will be disbursed as term loans for agricultural and allied sectors, such as dairy, fisheries, and poultry. ✅ To boost equitable credit distribution, the RBI has initiated a ranking system for districts based on per capita credit flow. This initiative will ensure that credit is more evenly distributed across regions, boosting rural economies and strengthening India’s agricultural sector. 🌱 #AgriCredit #FarmersFirst #FinancialInclusion #IndianEconomy #RuralDevelopment #Agriculture #GovtOfIndia #AgriLoans