While the PM Kisan Yojana offers ₹6,000, this scheme provides collateral-free loans worth lakhs—here’s how you can avail the benefit..

The government has launched several schemes to boost farmers' income and strengthen their financial position. Notable among these are the PM Kisan Yojana and schemes offering collateral-free loans. However, a significant number of eligible farmers still fail to fully avail themselves of the benefits of these schemes. If you are engaged in farming, it is certainly worth looking into these two schemes.

What is the PM Kisan Yojana, and who benefits from it?
The PM Kisan Samman Nidhi (PM Kisan Yojana) is one of the most popular and beneficial government schemes for the country's farmers. The primary objective of this scheme is to provide financial support to farmers for agricultural activities and daily household expenses. Under this scheme, the government provides annual financial assistance of ₹6,000. This amount is transferred directly to the farmers' bank accounts in three equal installments of ₹2,000 each.

Additionally, lakhs of farmers are currently awaiting the 24th installment of the PM Kisan Yojana. There has been no update from the government regarding the next installment so far.

How does the Kisan Credit Card provide benefits?
Farming often requires funds for fertilizers, seeds, pesticides, and agricultural equipment. To protect farmers from the exorbitant interest rates charged by moneylenders and to provide them with easy access to credit, the government runs the Kisan Credit Card (KCC) scheme. Under this scheme, farmers are granted loans for farming and related needs at very low interest rates.

Interest rate of just 4%
Under the KCC scheme, the standard annual interest rate on loans up to ₹3 lakh is 7%. If a farmer repays the loan on time, the government offers an additional rebate of 3%. Consequently, for farmers who repay their loans on time, the effective interest rate drops to just 4% per annum.

Who is eligible for the Kisan Credit Card?
Benefits of the KCC scheme are not limited to landowners; others can avail of them as well.

1. Farmers cultivating their own land (Individual or Joint Borrowers). 2. Tenant farmers, oral lessees, and sharecroppers.
3. Self-Help Groups (SHGs) and Joint Liability Groups (JLGs), including sharecroppers or tenant farmers.
4. Individuals engaged in animal husbandry and fisheries—in addition to farming—are also eligible.
5. Age limit: The applicant must be between 18 and 75 years of age. (If the applicant is over 60 years old, a legal heir must be included as a co-applicant).

Other benefits of KCC
Loans of up to ₹1.60 lakh are available without any security or guarantee (collateral-free). The loan repayment period is aligned with the crop harvest and sale schedule, ensuring farmers do not face immediate financial pressure. Additionally, benefits such as crop insurance (PMFBY) and accident insurance are provided.

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