In the Union Budget 2025, Finance Minister Nirmala Sitharaman has announced a significant increase in the limit for Kisan Credit Cards (KCC). The new limit will now be ₹5 lakh, up from the previous ₹3 lakh. This comes after long-standing demands from farmers for higher credit limits.
The KCC scheme, introduced in 1998, provides farmers with loans at a 9% interest rate. However, the government offers a 2% subsidy, and if loans are repaid on time, an additional 3% discount is provided, reducing the effective interest rate to just 4%.Currently, there are 7.75 crore Kisan Credit Cards active across India. By March 2024, loans totaling ₹9.81 lakh crore are expected to be outstanding, with 1.24 lakh cards being distributed for fisheries and 44.4 lakh cards for livestock management.
The Kisan loans Card scheme was aimed at making easy and affordable access to cash for acquiring all agricultural inputs that include seeds, fertilizers, pesticides, among others, in addition to costs incurred in terms of production.