Daijiworld Media Network- New Delhi
New Delhi, Feb 26: The Kisan Credit Card (KCC) scheme has witnessed a significant expansion, with the total amount disbursed under operative KCC accounts surpassing Rs 10.05 lac cr as of December 31, 2024. This marks more than a two-fold increase from Rs 4.26 lac cr in March 2014, highlighting the growing access to institutional credit for farmers, according to the latest data released by the ministry of finance.
The scheme has benefited 7.72 crore farmers, ensuring them affordable and timely access to working capital loans for agriculture and allied activities.
The Kisan credit card is a pivotal financial tool that enables farmers to access credit for purchasing essential agricultural inputs such as seeds, fertilizers, pesticides, and other operational expenses. The scheme was expanded in 2019 to also cover the working capital needs of animal husbandry, dairy, and fisheries sectors, thereby extending its benefits to a broader segment of rural India.
The Modified Interest Subvention Scheme (MISS) offers an interest subvention of 1.5% on short-term agricultural loans up to Rs 3lac, making credit more affordable at a concessional rate of 7% per annum. Farmers who repay their loans on time receive an additional Prompt Repayment Incentive (PRI) of 3%, effectively reducing the interest rate to just 4%.
Additionally, loans up to Rs 2 lac are collateral-free, ensuring easy access to credit, particularly for small and marginal farmers.
The Union Budget 2025-26 has further strengthened agricultural credit by increasing the loan limit under MISS from Rs 3 lac to Rs 5 lac, ensuring greater financial support for farmers.
Government allocations for the agricultural sector have also seen a six-fold increase, rising from Rs 21,933.50 crore in 2013-14 to Rs 1,27,290 cr in 2025-26, reinforcing the commitment of the Prime Minister Narendra Modi-led government towards the welfare of farmers and rural development.
The steady expansion of KCC disbursals and budgetary allocations underscores the government’s focus on improving financial inclusion, reducing dependency on non-institutional credit sources, and ensuring sustainable agricultural growth across the country.