Credit Card Loan Update: Farmers will get good news in Budget 2025, credit card loan limit may be Rs 5 lakh..

Big relief news may come for farmers in Budget 2025. The government is preparing to increase the limit of Kisan Credit Card from Rs 3 lakh to Rs 5 lakh in the upcoming budget on February 1. A source familiar with the matter said in a Business Standard report that the last change in the KCC limit was made a long time ago, and the government was constantly receiving demands, the purpose of this move is to support farmers and boost rural demand. Therefore, the government can increase the KCC limit to Rs 5 lakh.

When did the Kisan Credit Card Scheme start

The Kisan Credit Card Scheme was started about 26 years ago in the year 1998. Under this scheme, farmers who do farming and related work are provided short-term loans at an interest rate of 9 percent. The special thing about this scheme is that the government also gives a discount of 2 percent on the interest charged on the loan. At the same time, farmers who repay the entire loan on time are given an additional 3 percent discount as an incentive. This means that this loan is given to farmers at only 4 percent annual interest. As of June 30, 2023, the number of people taking such loans was more than 7.4 crores. On which more than Rs 8.9 lakh crore was seen as outstanding.

Limit not increased

According to Vishal Sharma, co-founder and CEO of fintech firm Advarisk, in a media report, the cost of farming has increased significantly. On the contrary, there has been no increase in the limit of loans available to farmers for a long time. If the limit of KCC is increased in the budget, then there will be an increase in production in the agri sector and an increase in agri income will also be seen. Due to this along with the change in the lifestyle of the farmers, they will also be able to repay the loan on time.

They also need a loan

NABARD Chairman Shaji KV said in a Business Standard report that the purpose of the Kisan Credit Card is to provide relief to small farmers. He said that agriculture does not only mean growing crops but also doing work related to it. They also need subsidized loans a lot. So that their income also increases. He said that to increase the income of farmers, NABARD is also running a campaign in collaboration with the Department of Financial Services. So that people doing animal husbandry and fisheries can also get loans.

How many were issued credit cards

Shaji KV said that banks and rural financial institutions have been included in this campaign. Also, state governments are being encouraged to register fish farmers. After the registration of farmers, banks can be asked to give loans. According to NABARD data, till October 2024, 167.53 lakh Kisan Credit Cards were issued by cooperative banks and regional rural banks. Whose total credit limit was Rs 1.73 lakh crore. 11.24 lakh cards were issued to dairy farmers, whose limit was Rs 10,453.71 crore. Out of these, 65,000 Kisan Credit Cards were issued to fishermen with a limit of Rs 341.70 crore.

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