Synopsis
As of December 2024, the Kisan Credit Card scheme has increased its funding to over Rs 10 lakh crore, significantly benefiting 7.72 crore farmers. This growth reflects a commitment to enhancing agricultural credit accessibility and reducing reliance on informal loans.Key Takeaways
- Total KCC funding: Rs 10.05 lakh crore.
- Beneficiaries: 7.72 crore farmers.
- Collateral-free loans up to Rs 2 lakh.
- Interest subsidy of 1.5% under MISS.
- Proposed loan cap increase to Rs 5 lakh.
New Delhi, Feb 26 (NationPress) Demonstrating a significant enhancement in agricultural credit and a decline in reliance on non-institutional financing, the total amount disbursed under operational Kisan Credit Card (KCC) accounts has surged from Rs 4.26 lakh crore in March 2014 to Rs 10.05 lakh crore by December 2024, as per the latest government statistics.
As of December 31, a cumulative total of Rs 10.05 lakh crore has been allocated through KCCs, benefiting 7.72 crore farmers.
This reflects a substantial rise in the availability of affordable working capital loans for farmers engaged in agricultural and related activities, according to a statement from the Ministry of Finance.
The KCC is designed to offer farmers prompt and affordable credit for procuring essential agricultural inputs such as seeds, fertilizers, and pesticides, as well as for fulfilling cash needs associated with crop production and allied endeavors.
In 2019, the KCC initiative was broadened to encompass working capital necessities for allied sectors—namely Animal Husbandry, Dairy, and Fisheries.
The government, through the Modified Interest Subvention Scheme (MISS), grants an interest subsidy of 1.5 percent to banks for providing short-term agricultural loans via KCC, up to Rs 3 lakh at a subsidized interest rate of 7 percent per annum.
The ministry noted that an additional Prompt Repayment Incentive of 3 percent is available to farmers who repay their loans on time, effectively lowering their interest rate to 4 percent.
Loans up to Rs 2 lakh are provided without collateral, ensuring easy access to credit for small and marginal farmers, as highlighted in the ministry's statement.
The Union Budget for 2025-26 has proposed an increase in the loan cap under the Modified Interest Subvention Scheme from Rs 3 lakh to Rs 5 lakh, which will further aid farmers.
The allocation for agriculture in the 2025-26 Budget has seen a six-fold increase to Rs 1,27,290 crore from Rs 21,933.50 crore in 2013-14, underscoring the heightened government support for farmers under Prime Minister Narendra Modi's administration.
