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Kisan Credit Card: Who gets a Kisan Credit Card, where can the loan money be spent?

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Budget 2025: Finance Minister Nirmala Sitharaman is presenting her eighth budget in Parliament. In her budget speech, she presented the concept of developed India. In this sequence, she has given a big gift to the farmers in this budget by increasing the limit of Kisan Credit Card to Rs 5 lakh.

Let us tell you that till now farmers used to get only a limit of Rs 3 lakh on Kisan Credit Card for farming. Apart from this, Finance Minister Nirmala Sitharaman has made many important announcements to speed up the sluggish economic growth of the country.

When will the KCC limit increase?

Finance Minister Nirmala Sitharaman has given a big gift to the farmers. Till now farmers used to get a loan of only Rs 3 lakh through KCC, which has been increased to Rs 5 lakh in Budget 2025. Finance Minister Nirmala Sitharaman said that soon farmers will get the benefit of this increased limit.

Where can you spend KCC loan money?

Farmers are given loans at very cheap interest rates on Kisan Credit Cards. This loan is given to farmers for farming. In such a situation, farmers can use the limit of KCC to buy seeds, fertilizers, pesticides, and DAP for farming. Let us tell you that there are a large number of small farmers in the country, due to which they do not have enough money to do farming. Therefore, the government started the KCC scheme to help the farmers.

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 an interest rate of only 4 percent per annum. By 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.

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