Collateral free agricultural loan limit enhanced up to 1.60 lakh

Currently the banks are mandated to extend collateral-free agriculture loans up to Rs.1 lakh. This limit of Rs.1 lakh was fixed in the year 2010.In view of overall inflation and rise in agriculture input cost since 2010, Reserve Bank of India vide its circular RBI/2018-19/118 FIDD.CO.FSD.BC.No.13/05.05.010/2018-19 dated February 7, 2019 advised all the scheduled commercial…

Interest Equalisation Scheme for Export Credit

The interest Equalisation Scheme (IES) for pre and post shipment rupee export credit is being implemented by Directorate (DGFT) through commercial banks.The scheme came into effect from 01.04.2015 and is for a period of 5 years.(The scheme was earlier called as ‘interest subvention scheme’  which was  existing for the period from August 2010 to 31.03.2015).…

How agriculture insurance helps farmers on crop losses?

The farmers in India have been inherently facing with on-farm risks like famine; flood, extreme weather etc. Though these types of natural risks cannot be totally avoided, there are many new on-field techniques developed in India to minimize the loss. However, the most important strategy to mitigate the risk is agriculture insurance. The insurance company…

Definitions of Micro, Small & Medium Enterprises (MSMEs)

The MSMED Act 2006 classifies Micro, Small & Medium Enterprises (MSMEs) in two categories viz. Manufacturing Enterprises and Service Enterprises. The manufacturing enterprises are those who are engaged in manufacture or production of goods pertaining to any industry listed in first schedule to the industries (Development and Regulation) Act 1951 or an enterprise employing plant…

Why Micro Small enterprises do not get adequate bank finance?

Although, the commercial banks and other financial institutions have been making steady strides to increase their share of credits to MSE sector, but they have certain difficulties in sanctioning limits to SME borrowers.  In an environment of NPA numbers in banking sector alarmingly swelling, banks themselves are under the stress and facing challenge to raise…