Kisan Credit Card: ₹5.7 Lakh Crore Sanctioned – FM Sitharaman
- the Kisan Credit Card (KCC) scheme is a vital support for india's agricultural community, ensuring timely and affordable institutional credit, according to Finance Minister Nirmala Sitharaman.
- Sitharaman's office stated that the KCC has become a "lifeline for millions of farmers" under Prime Minister Narendra Modi's leadership.
- The KCC scheme allows farmers to borrow up to Rs 3 lakh at a 4% interest rate, with timely repayments.
Finance Minister Nirmala Sitharaman confirms the Kisan Credit Card (KCC) scheme provides critical support to India’s farmers, solidifying its place as a lifeline. Discover how over 465 lakh applications have been sanctioned, representing a substantial credit limit of ₹5.7 lakh crore. Farmers can access loans up to ₹3 lakh at a mere 4% interest rate, considerably reducing their financial burden. This initiative, bolstered by a five-fold increase in the agriculture budget since 2013, now extends to fisheries and dairy, impacting approximately 7.7 crore farmers. The KCC scheme now covers post-harvest costs and working capital,demonstrating the government’s commitment to agricultural finance. Read more at News Directory 3. Discover what’s next for this pivotal program.
Kisan Credit Card Scheme Supports Indian Farmers
Updated June 7, 2025
the Kisan Credit Card (KCC) scheme is a vital support for india’s agricultural community, ensuring timely and affordable institutional credit, according to Finance Minister Nirmala Sitharaman.
Sitharaman’s office stated that the KCC has become a “lifeline for millions of farmers” under Prime Minister Narendra Modi’s leadership. Over 465 lakh applications have been sanctioned,representing a credit limit of Rs 5.7 lakh crore.
The KCC scheme allows farmers to borrow up to Rs 3 lakh at a 4% interest rate, with timely repayments. This includes a 3% Prompt Repayment Incentive (PRI), significantly reducing the interest burden.
farmers can save up to Rs 9,000 annually in interest for every Rs 1 lakh borrowed. The government has increased the subsidised loan limit to Rs 5 lakh, extending benefits to approximately 7.7 crore farmers, including those in fisheries and dairy.
Initially for cultivation and harvesting, the KCC scheme now covers post-harvest costs, marketing loans, household consumption, and working capital for farm assets. In 2019, the scheme expanded to include animal husbandry, dairying, and fisheries, allowing farmers in these sectors to access collateral-free loans up to Rs 1.6 lakh.
Sitharaman also highlighted the significant increase in the agriculture budget, reflecting the government’s commitment to farmers’ welfare.The agriculture budget has increased more than fivefold, from Rs 21,500 crore in 2013 to Rs 1.22 lakh crore in 2024.
The Union Budget 2025–26 continues to prioritize financial inclusion and security for farmers. The enhanced loan limit under the Modified Interest Subvention Scheme, from Rs 3 lakh to Rs 5 lakh, aims to improve credit accessibility and boost agricultural productivity.
With a ample portion of India’s population engaged in agriculture, the Kisan Credit Card (KCC) scheme plays a crucial role in ensuring farmers have timely access to credit, reducing reliance on high-interest informal loans and supporting agricultural finance.
What’s next
The government is expected to further refine the Kisan Credit Card scheme to enhance its reach and effectiveness, ensuring more farmers benefit from accessible and affordable credit options.