The Presidents/Chief Executive Officers

All Banks/Microfinance Banks

Dear Sir/Madam,

Report on 'Indicative Credit Limits and Eligible Items for Agriculture Financing'

The indicative credit limits for agriculture financing have been revised to align the same with the agriculture input requirements. The enhanced indicative credit limits are meant to serve as a guideline for banks to assess the credit requirements of agriculture borrowers while sanctioning credit limits. Banks may, however, make adjustments on the basis of prevailing market conditions, local prices of inputs, and repayment capacity of borrowers.

2. The revised report will also facilitate provincial planning departments in estimating the total financial and credit requirements of respective provinces/regions for farm and non-farm sectors.
3. Banks are advised to circulate the above instructions to their field offices immediately for compliance.
4. Please acknowledge receipt.

Encl: Report on Indicative Credit Limits