The Kisan Credit Card has become a lifeline for millions of farmers, stated Finance Minister Nirmala Sitharaman. In a post on the social media platform X, Sitharaman noted that over 465 lakh applications have been sanctioned with Rs 5.7 lakh crore credit limit.
The Kisan Credit Card (KCC) is a government-backed scheme that provides short-term credit to farmers for agricultural needs. It offers affordable loans for crop production, equipment, and other farming expenses.
KCC has enabled easy access to short-term crop loans. Farmers can obtain loans of up to Rs 3 lakh at a rate of just 4% if repaid on time. This includes the central government’s 3% Prompt Repayment Incentive. Thus, effectively, for every one lakh KCC loan, farmers can save up to Rs 9,000 in interest per year, the FM stated in the post.
The government increased the financial support for the scheme in the Union Budget 2025-26 by enhancing the loan limit under the Modified Interest Subvention Scheme from Rs 3 lakh to Rs 5 lakh.
