By Admin 
Kisan Credit Card: While presenting Budget 2025 on February 1, Finance Minister Nirmala Sitharaman had talked about increasing the short term loan limit for Kisan Credit Card (KCC) holders from Rs 3 lakh to Rs 5 lakh, which will benefit 7.75 crore farmers. This order of the government is likely to be implemented from the next financial year.
Rebate will also be given in interest
According to the report of Financial Express, officials related to this have said that the Cabinet has approved the Interest Subvention Scheme for Agricultural Credit in order to meet the working capital needs of the farmers. Under this, farmers taking loans up to Rs 3 lakh will get interest rebate of up to 1.5 percent.
The objective behind this is to ensure adequate credit flow in the agriculture sector. “The appraisal report for the interest subvention scheme is being considered by the Expenditure Finance Committee. We are hopeful that the increase in short-term credit for KCC holders will be implemented from the next financial year,” an official told FE.
Crores of farmers will benefit
However, sources said that at present the average short term credit flow for each KCC holder is around Rs 1.6 lakh. That means at present every KCC holder takes an average loan of Rs 1.6 lakh. At present the number of active KCCs in the country is 7.71 crore, which also includes farmers involved in fisheries and animal husbandry. Apart from this, from January last year, RBI has also increased the limit of loan without guarantee under KCC from Rs 1.6 lakh to Rs 2 lakh.
Finance Minister Nirmala Sitharaman had said in her budget speech for 2025-26, “KCC provides short-term loans to 77 million farmers, fishermen and dairy farmers. Under the Modified Interest Subvention Scheme (MISS), the limit of loans taken through KCC will be increased from Rs 3 lakh to Rs 5 lakh.”
Under the Modified Interest Subvention Scheme (MISS) of the Agriculture Ministry, KCC holders can take a loan up to Rs 3 lakh at 7% interest for working capital needs. Farmers who repay the loan on time get an additional rebate of 3 percent, due to which the effective interest rate reduces to 4 percent.
How to apply for Kisan Credit Card?
- If you want, you can apply for it by visiting the official website of the bank or by visiting any of your nearest branches.
- From here you will first have to take the form for Kisan Card.
- After this, it will have to be filled and submitted along with necessary documents like Aadhar Card, Voter ID, PAN Card.
- The card will be issued after bank verification.
- Usually the card is received within 15-20 days of applying.
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