Kisan Credit Card Disbursals Hit Rs 10 Lakh Crore

By siliconindia  |  Wednesday, 26 February 2025, 10:12:42 AM IST

Kisan Credit Card Disbursals Hit Rs 10 Lakh Crore
In a major increase in farm financing, the cumulative amount sanctioned under functional Kisan Credit Card (KCC) accounts has risen to over Rs 10.05 lakh crore as of December 2024, more than double the Rs 4.26 lakh crore in March 2014. This achievement has provided cheap credit to 7.72 crore farmers nationwide, as per the latest figures of the Ministry of Finance.
The Kisan Credit Card scheme, introduced to ensure timely and convenient credit to farmers for buying necessary agricultural inputs such as seeds, fertilizers, and pesticides, has been modified over time to cover allied activities like Animal Husbandry, Dairy, and Fisheries from 2019. The expansion of the scheme has helped to decrease farmers' dependence on non-institutional credit and improve financial inclusion in rural regions.
Through the Modified Interest Subvention Scheme (MISS), farmers are eligible to take short-term farm loans of up to Rs 3 lakh at a subsidized rate of interest of 7 percent per annum. Furthermore, timely repayment of the loan earns them a Prompt Repayment Incentive of 3 percent, which reduces the rate of interest to 4 percent. For marginal and small farmers, loan of up to Rs 2 lakh is granted on a collateral-free basis in order to have hassle-free availability of necessary working capital.
The Union Budget 2025-26 has also supported the scheme further by increasing the loan limit under MISS to Rs 5 lakh from Rs 3 lakh, vowing to extend more assistance to farmers with bigger operations or diversified activities. This is also in line with a larger effort to deepen finance for the agriculture sector, seen in the six times increase in agriculture budgetary provision from Rs 21,933.50 crore during 2013-14 to Rs 1,27,290 crore in 2025-26.
The Ministry of Finance highlighted that the initiatives are targeted at empowering the farmers, securing their economic well-being, and promoting sustainable agricultural development. The ongoing growth of KCCs and increased government support reflect a strong commitment towards the farming community, propelling India's rural economy.

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