Business

Kisan Credit Card Amount Crosses Rs 10 Lakh Crore; Benefits 7.72 Crore Farmers

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.

Also Read: India’s Public Distribution System Reduces Child Stunting, Study Finds

Anamika Agarwala

Recent Posts

PM Modi Calls India-Central Asia Partnership ‘Force Multiplier’ For Regional Global Stability

PM Narendra Modi met with the Foreign Ministers of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan…

2 hours ago

PM Modi, Canadian PM Carney Hold Talks; India To Attend G7 Summit In June

PM Narendra Modi spoke with Canada's new Prime Minister Mark Carney on Friday, congratulating him…

3 hours ago

Vedanta Boosts Green Energy Push; Surpasses 1 GW Renewable Energy Mark

On the occasion of World Environment Day, Vedanta Ltd announced a significant milestone in its…

3 hours ago

FDI Inflows In India Surpass $500 Billion In A Decade; Driven By Key Reforms

India attracted over $500 billion in foreign direct investment (FDI) equity inflows between 2014 and…

4 hours ago

PM Modi Takes Dig At Pakistan For Attacking ‘Insaniyat’ & ‘Kashmiriyat’

PM Narendra Modi strongly condemned Pakistan for the Pahalgam terror attack, accusing it of trying…

4 hours ago

PM Modi Attacks Pakistan Over Pahalgam Terror Incident; Hails Operation Sindoor

PM Narendra Modi on Thursday launched a scathing attack on Pakistan for attempting to derail…

5 hours ago