KCC: Kisan Credit created history! 10 lakh crore rupees reached accounts, 7 crore farmers got benefit..

According to the latest government data, the amount under operative Kisan Credit Card (KCC) accounts has more than doubled from Rs 4.26 lakh crore in March 2014 to Rs 10.05 lakh crore in December 2024. This reflects the availability of credit in agriculture and the reduction in dependence on non-institutional credit. A total of Rs 10.05 lakh crore has been given under operative KCC till December 31, benefiting 7.72 crore farmers.

The Finance Ministry said in a statement, "This reflects a spectacular increase in the amount of affordable working capital loans given to farmers for agriculture and allied activities." KCC is a banking product that provides timely and affordable credit to farmers to purchase agricultural inputs such as seeds, fertilizers, and pesticides as well as to meet cash needs from crop production and related activities.

The KCC scheme was expanded in the year 2019 to cover the working capital requirements of related activities such as animal husbandry, dairy, and fisheries. Under the Modified Interest Subsidy Scheme (MISS), the scheme provides an interest subsidy of 1.5 percent to banks for providing short-term agricultural loans through KCC up to Rs 3 lakh at a concessional interest rate of 7 per cent per annum. According to the ministry, an additional prompt repayment incentive of 3 per cent is provided to farmers on timely repayment of the loan, which effectively reduces the interest rate for farmers to 4 per cent.

The ministry statement said that loans up to Rs 2 lakh are made available without any collateral, ensuring hassle-free access to credit for small and marginal farmers. The Union Budget 2025-26 has announced an increase in the loan limit under the revised interest subvention scheme from Rs 3 lakh to Rs 5 lakh, which will benefit farmers further. Reflecting the increased government support for farmers under Prime Minister Narendra Modi-led government, the allocation for agriculture in the Budget 2025-26 has been increased six-fold from Rs 21,933.50 crore in 2013-14 to Rs 1,27,290 crore.

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