Kisan Credit Card Loan Limit Increased to ₹5 Lakh in Budget 2025
Union Budget 2025-26 Finance Minister Nirmala Sitharaman said the Kisan Credit Card (KCC) loan limit increased. The loan limit under the interest subvention scheme will be increased from ₹3 lakh to ₹5 lakh. This decision is expected to provide short-term credit to 7.7 crore farmers at subsidized interest rates.
The Finance Minister added that the loan limit would be extended for loans availed through the KCC. This move will facilitate farmer’s availability of the funds required for their agriculture and allied activities at a lower rate.
The KCC scheme aims to provide sufficient credit to farmers for their agricultural needs.
Kisan Credit Card
The Kisan Credit Card is introduced to provide easy access to institutional credit to farmers. It is a savings and loan product that addresses short-term credit needs in agriculture. The KCC scheme, launched in 1998, was expanded in 2019 to include working capital requirements for animal husbandry, dairying, and fisheries.
Modified Interest Subvention Scheme
Under the existing scheme, farmers are eligible for collateral-free loans of up to ₹1.60 lakh. The government offers a 1.5% interest subvention to banks and an even greater Prompt Repayment Incentive (PRI) of 3% for animal husbandry, dairying, and fisheries loans in the ₹2-lakh range for the Modified Interest Subvention Scheme (MISS).
Revolving Cash Credit Facility
KCC operates as a revolving cash credit facility. Farmers can then withdraw and pay back these funds at their convenience. Along with these, wherever available, the scheme also provides livestock insurance, personal insurance, asset insurance, and health insurance.
As of March 2024, 7.75 crore KCC accounts were operational in the country, as per the Economic Survey. The total outstanding under these accounts is ₹9.81 lakh crore. Also, 1.24 lakh KCCs were issued for fisheries and 44.40 lakh for animal husbandry activities.
Kisan Rin Portal
The claim processing under the Modified Interest Subvention Scheme, too, has been digitized by the government through the Kisan Rin Portal (KRP). The farming community benefited: By December 31, 2024, claims worth more than ₹1 lakh crore have already been settled, benefiting around 5.9 crore farmers.
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