Kisan Credit Card a lifeline for millions of farmers; Rs 5.7 lakh crore sanctioned under scheme: FM Sitharaman

The Kisan Credit Card (KCC) scheme has emerged as a crucial support system for India’s farming community, Finance Minister Nirmala Sitharaman said on Saturday, highlighting its role in ensuring timely and affordable institutional credit for farmers.

Sharing a post on X, the Finance Minister’s office called KCC a “lifeline for millions of farmers” under the leadership of Prime Minister Narendra Modi. The statement noted that “Over 465 lakh applications have been sanctioned with Rs 5.7 lakh crore credit limit.”

“Under the leadership of Prime Minister Narendra Modi, the Kisan Credit Card (KCC) has become a lifeline for millions of farmers,” the post read.

Loan at 4% interest with timely repayment

The KCC scheme enables farmers to avail loans of up to Rs 3 lakh at just 4 per cent interest, provided repayments are made on time. This includes a 3 per cent Prompt Repayment Incentive (PRI), which substantially brings down the effective interest burden for farmers.

This means a farmer can save up to Rs 9,000 annually in interest for every Rs 1 lakh borrowed under the scheme.

The government has further increased the subsidised loan limit to Rs 5 lakh, expanding benefits to approximately 7.7 crore farmers, including those engaged in fisheries and dairy.

The official post added that the KCC scheme ensures “easy access to short-term crop loans” and that the interest rate is “as low as 4 per cent with timely repayment”.

Credit for cultivation, post-harvest, and more

Initially aimed at supporting cultivation and harvesting activities, the KCC scheme has evolved into a broader tool for farmer empowerment. It now also covers post-harvest costs, marketing loans, household consumption, and working capital for farm assets.

Recognising the importance of allied sectors in agriculture, the scheme was expanded in 2019 to include animal husbandry, dairying, and fisheries. Farmers engaged in these sectors can now also avail collateral-free loans up to Rs 1.6 lakh.

Five-fold increase in agriculture budget since 2013

Applauding the Centre’s efforts, Sitharaman also pointed to a sharp rise in the agricultural budget, which reflects the government’s commitment to farmers’ welfare.

“From just Rs 21,500 crore in 2013 to Rs 1.22 lakh crore in 2024, the Agriculture Budget has seen a more than 5X rise, reflecting Prime Minister Narendra Modi-led government’s commitment to its farmers and their welfare,” said Sitharaman’s Office on X.

Budget 2025–26 puts focus on agri-finance

In the Union Budget 2025–26, the Centre has continued to prioritise financial inclusion and security for farmers. The enhanced loan limit under the Modified Interest Subvention Scheme from Rs 3 lakh to Rs 5 lakh demonstrates the government’s push to improve credit accessibility and boost agricultural productivity.

With nearly 46.1 per cent of India’s population engaged in agriculture and allied activities, the KCC scheme plays a pivotal role in ensuring that farmers have timely access to credit and can avoid reliance on high-interest informal loans.