Presenting the 14th consecutive Budget under the Narendra Modi government since 2014, Finance Minister Nirmala Sitharaman said the loan limit under the Kisan Credit Card scheme will be increased to ₹5 lakh from the current limit of ₹3 lakh.Sitharaman said the Kisan Credit Cards would facilitate short-term loans for 7.7 crore farmers, fishermen, and dairy farmers.What is the Kisan Credit Card scheme?
Kisan Credit Card (KCC) Scheme, launched in August 1998, across the country with the objective of providing adequate and timely credit to the farmers, including Self Help Groups (SHGs) or Joint Liability Groups of Farmers including tenant farmers, share croppers etc., to facilitate them to readily purchase agricultural inputs such as seeds, fertilizers etc., and to draw cash for crop production, allied and non-farm activities during the year for their agricultural operation.Features of the Kisan Credit Card schemeAdequate and timely credit to farmers to purchese agricultural inputs such as seeds, fertilizers etc., and to draw cash for crop production, allied and non-farm activities during the year for their agricultural operation
➢ Single window for needs e.g. post-harvest expenses, produce marketing loan household/consumption requirements, working capital for maintenance of farm asset, investment credit for agriculture and allied activities
➢ Loans, up to the limit of Rs. 2 lakh are extended without the need for collateral.
➢ Interest Subvention/Incentive for prompt repayment.Click here for Budget live updatesKey milestones in the KCC ecosystemExpanded coverage: Since 2018-19, KCC has been extended to fisheries and animal husbandry sectors. By March 2024, 1.24 lakh KCCs were issued to fisheries, and 44.40 lakh to animal husbandry activities.Higher collateral-free loans: The collateral-free loan limit was enhanced to ₹1.6 lakh, further easing access for small and marginal farmers.On the eve of the Budget, Sitharaman also said the government will enhance credit guarantee cover for MSMEs to improve their credit access. Besides, the government will introduce customised credit cards with ₹5 lakh limit for micro-enterprises.On Friday, the Finance Ministry had said the Ground Level Agriculture Credit (GLC) has crossed ₹19 lakh crore in nine months of the current fiscal as against the target of ₹27.50 lakh crore for the entire FY25.Against the target of Rs 27.50 lakh crore, agriculture credit to the tune of ₹19.28 lakh crore has been disbursed as of December 31, 2024, registering 70 per cent achievement, the finance ministry said in a statement on Friday.First Published: Feb 1, 2025 11:25 AM IST
