Operative Kisan Credit Card Amount Surpasses Rs 10 Lakh Crore, More Than Double In A Decade, Benefitting 7.72 Crore Farmers

The total amount disbursed 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 by December 2024, ANI reported.

This significant increase highlights the expansion of affordable working capital loans for farmers engaged in agriculture and allied activities.

According to the Ministry of Finance, this surge reflects credit deepening in agriculture and reduced dependency on non-institutional credit.

The Kisan Credit Card is a banking initiative designed to provide farmers with timely and affordable credit for the purchase of agricultural inputs such as seeds, fertilisers, and pesticides.

It also caters to cash flow requirements for crop production and allied agricultural activities.

Recognising the growing financial needs of farmers, the government extended the KCC scheme in 2019 to include working capital requirements for allied sectors such as animal husbandry, dairy, and fisheries.

Under the Modified Interest Subvention Scheme (MISS), the Centre offers an interest subvention of 1.5 per cent to banks, enabling them to provide short-term agricultural loans through KCCs up to Rs 3 lakh at a concessional interest rate of 7 per cent per annum.

Additionally, farmers who make timely repayments benefit from a Prompt Repayment Incentive of 3 per cent, effectively reducing the interest rate to just 4 per cent.

To further ensure easy access to credit for small and marginal farmers, loans of up to Rs 2 lakh are provided without collateral, facilitating a seamless borrowing process.

In a significant move aimed at further supporting the agricultural sector, the Finance Minister, in the Union Budget 2025-26, announced an increase in the loan limit under MISS from Rs 3 lakh to Rs 5 lakh.

This revision is expected to provide enhanced financial support to farmers, helping them expand their agricultural operations and improve productivity.

As of 31 December 2024, a total of Rs 10.05 lakh crore has been disbursed through operative KCCs, benefitting around 7.72 crore farmers across the country.

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