Kisan Credit Card : Kisan Credit Card (KCC) scheme was started in 1998. Earlier, under this, loan of up to Rs 1 lakh was available, which was increased to Rs 3 lakh. Now in Budget 2025, its limit has been further increased and now farmers can get loan of up to Rs 5 lakh.
Big relief to farmers in Budget 2025:
Finance Minister Nirmala Sitharaman has given a big relief to the farmers in Budget 2025. Now, the loan limit under Kisan Credit Card has been increased from Rs 3 lakh to Rs 5 lakh. This decision will benefit crores of farmers across the country. According to the Economic Survey 2024-25, till March 2024, 7.75 crore Kisan Credit Cards have been issued in the country and loans worth Rs 9.81 lakh crore have been given.
What is Kisan Credit Card (KCC)?
KCC scheme was implemented on the recommendation of NABARD (National Bank for Agriculture and Rural Development). Its objective is to provide loans to farmers in an easy and accessible way so that they can buy seeds, fertilizers, pesticides, and other agricultural goods. This scheme plays an important role in providing financial help to farmers.
Interest Rate on Kisan Credit Card Now under KCC, a loan of up to Rs 5 lakh is available. It attracts 7% annual interest. But if farmers repay their loan on time, they get an interest subsidy of 3%. This makes their effective interest rate only 4%.
Who can get Kisan Credit Card?The benefits of Kisan Credit Card are not limited to agriculture only. People involved in fish farming, dairy farming, livestock, and horticulture can also take advantage of it. Eligibility criteria include:
It is necessary to be an Indian citizen.
Age should be between 18 to 75 years.
How to get Kisan Credit Card?It is very easy to get Kisan Credit Card. It can be made from government and private banks, rural banks, and cooperative societies. Application can be made in both ways – online and offline.
Offline Application Process:
You will have to fill the application form by going to the nearest bank branch.
Necessary documents have to be submitted like Aadhar card, PAN card, land papers, and passport size photo.
Online Application Process (For SBI):
Go to SBI’s official website https://sbi.co.in/web/personal-banking/home.
Go to ‘Agriculture & Rural’ tab and choose ‘Crop Loan’ and then ‘Kisan Credit Card’ option.
Download the application form, fill it and submit it.
The bank will contact you within 3-4 days and the process of making KCC will start.
Process of repaying loan
Under Kisan Credit Card, loan is given for 5 years which gets renewed after 5 years.
Farmer has to deposit interest twice in a year.
Entire loan amount and interest has to be repaid once in a year.
Principal amount can be repaid the very next day of repaying the loan.
Only if loan is repaid on time, 3% interest subsidy is available. Otherwise, 7% interest is charged.
If interest is not paid on time, the account can also become NPA.
Thus, Kisan Credit Card scheme is a great help for the farmers, which helps them in fulfilling their financial needs.
