In a major boost to the agricultural sector, the total amount sanctioned under operative Kisan Credit Card (KCC) accounts has surpassed ₹10 lakh crore, benefiting 7.72 crore farmers across the country. This marks a significant rise from ₹4.26 lakh crore in March 2014, reflecting the growing availability of affordable credit for agricultural and allied activities. The sharp increase highlights the deepening of institutional credit in rural India, reducing farmers’ dependence on informal and high-interest borrowing.
The Kisan Credit Card scheme has been instrumental in providing farmers with timely and affordable financial support for purchasing seeds, fertilizers, pesticides, and meeting other crop-related expenses. In 2019, the scheme was expanded to include working capital requirements for allied sectors such as animal husbandry, dairy, and fisheries, further strengthening rural livelihoods.
Under the Modified Interest Subvention Scheme (MISS), the government offers an interest subvention of 1.5% to banks for providing short-term agricultural loans up to ₹3 lakh at a concessional interest rate of 7% per annum. Farmers who repay their loans on time receive an additional Prompt Repayment Incentive of 3%, effectively lowering their interest rate to just 4%. To ensure easy access to credit, loans up to ₹2 lakh are provided without collateral, making the scheme especially beneficial for small and marginal farmers.
In a crucial move to enhance credit availability, the Union Budget 2025-26 has raised the loan limit under the Modified Interest Subvention Scheme from ₹3 lakh to ₹5 lakh. This step is expected to bring even greater financial relief to farmers, allowing them to invest more confidently in their agricultural activities.
With over ₹10.05 lakh crore disbursed through KCCs as of December 2024, the scheme continues to be a lifeline for millions of farmers, reinforcing the government’s commitment to strengthening rural credit and ensuring financial security for the agricultural community.
