Loans up to Rs 50 cr for start-ups get priority sector tag in new RBI norms3Photo© dnaindia.com

Loans up to Rs 50 cr for start-ups get priority sector tag in new RBI norms

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Mumbai, Sep 4: The Reserve Bank has expanded the scope of priority sector lending to include start-ups funding up to Rs 50 crore, and loans to farmers for installation of solar plants and compressed biogas plants.

The Priority Sector Lending (PSL) guidelines have been comprehensively reviewed and revised to align it with emerging national priorities and bring sharper focus on inclusive development, after having wide ranging discussions with all stakeholders, the RBI said on Friday.

"Revised PSL guidelines will enable better credit penetration to credit deficient areas; increase the lending to small and marginal farmers and weaker sections; boost credit to renewable energy, and health infrastructure," the RBI said in a release.