Good news for farmers, the RBI made a big announcement for small farmers.

RBI New Rule For Farmer: There are many farmers across the country who do not have the investment amount for farming. In such a situation, they want to do their farming by taking a loan. In view of this, RBI has implemented a rule for the loan of small farmers.

Gold and silver mortgage

According to RBI, now farmers can mortgage their gold and silver to take agricultural loan. Earlier there was a limit to take a loan without pledging anything. According to the new rule, farmers can now take a loan by pledging gold and silver at their own will. This new rule of RBI will make it easier for small farmers to take a loan.

Gold Loan Business

RBI has said that if someone wants to mortgage gold or silver at their own will, then banks cannot refuse him. This will benefit farmers and small businessmen in rural areas. Along with this, the gold loan business of banks will also increase.

Some relief to farmers

Gold is the most easily available asset in villages and gold loan is also easily available. With this, farmers will get quick loan in case of any kind of emergency like sowing time. In the year 2023, RBI had asked the banks to consider all loans given against jewelry as 'gold loan'. This meant that banks would have to follow the rules of gold loan. Although banks give some relaxation in loans to farmers because their income depends on the weather, but this is not the case in gold loan. Therefore, RBI has made special rules for farmers and small traders, which will give some relief to the farmers.

Transparency in gold loan process

The Reserve Bank of India (RBI) has issued new guidelines regarding gold loan this year, which will come into effect from January 1, 2026. The new rules will have to be followed by banks, non-banking financial companies (NBFCs), cooperative banks and housing finance companies. The aim of which is to make the gold loan process transparent, safe and uniform.

What is the rule, how much loan will be available

According to the new rule, the LTV ratio for all gold loans will be 75%, that is, a maximum loan of 75% of the market value of gold will be available. This means that if the value of gold is ₹ 1 lakh, then the bank will be able to give a maximum loan of ₹ 75,000. However, LTV can be 85% for loans up to ₹ 2.5 lakh and up to 80% for loans of ₹ 2.5-5 lakh.

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