The Kisan Credit Card (KCC) scheme in India has crossed a major milestone, with the total amount under operative KCC accounts reaching Rs 10.05 lakh crore as of December 2024.
This expansion of credit support for farmers has benefited approximately 7.72 crore farmers, showcasing a significant increase in institutional credit for agricultural activities.
A Steady Increase In Agricultural Credit Access
The amount of credit under KCC has more than doubled since March 2014 when it stood at Rs 4.26 lakh crore.
This growth reflects the government’s efforts to deepen credit access in agriculture and reduce farmers’ dependence on non-institutional sources of credit, which often charge higher interest rates.
The scheme provides farmers with affordable and timely credit for purchasing agricultural inputs like seeds, fertilizers, pesticides, and covering cash requirements for crop production and allied activities.
To further ease access to credit, the government provides an interest subvention of 1.5% under the Modified Interest Subvention Scheme (MISS), making short-term agricultural loans available at an effective interest rate of 4% for farmers.
Additionally, loans up to Rs 2 lakh are provided on a collateral-free basis, ensuring hassle-free access to credit for small and marginal farmers.
Expansion Of KCC For Allied Activities
In 2019, the KCC scheme was extended to cover the working capital needs of allied activities such as animal husbandry, dairy, and fisheries.
This expansion has enabled farmers involved in these sectors to avail of credit, boosting the overall reach and impact of the scheme in rural areas.
Budget 2025-26 & Enhanced Support For Farmers
The Union Budget for 2025-26 introduced additional measures to benefit farmers.
The government has increased the loan limit under the Modified Interest Subvention Scheme from Rs 3 lakh to Rs 5 lakh, offering more financial flexibility.
Furthermore, the allocation for agriculture has seen a six-fold increase, reflecting a growing commitment by the government to strengthen support for farmers under Prime Minister Narendra Modi’s leadership.
The growth of the Kisan Credit Card scheme and its expanded coverage under the NFSA reflects the government’s ongoing efforts to ensure that farmers have access to essential financial resources for agricultural and allied activities.
By providing affordable credit, the scheme has significantly reduced farmers’ reliance on informal credit sources, ensuring better financial stability for millions of farmers across the country.
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