Reference:

• The amount in active Kisan Credit Card (KCC) accounts has more than doubled from ₹4.26 lakh crore in March 2014 to ₹10.05 lakh crore in December 2024.
• This growth reflects the increasing accessibility of credit in the agricultural sector and a reduction in dependence on non-institutional loans.

Reasons for Growth in KCC:

Several government schemes and policies have contributed to this growth:

• PM Kisan Samman Nidhi Yojana: Provided direct financial assistance to farmers.
• Interest Subsidy Scheme: Loans available to farmers at an effective annual interest rate of 4% upon timely repayment.
• KCC for Animal Husbandry and Fisheries: Expanded beyond crop farming to include these sectors under KCC.

Impact on Farmers and Rural Economy:

• Increase in Agricultural Investment: Farmers can now invest more in seeds, fertilizers, and machinery.
• Reduced Dependence on Moneylenders: The need for private loans at high interest rates has decreased.
• Increase in Agricultural Production: Productivity has improved with the use of modern farming techniques and better resources.

Kisan Credit Card (KCC):

• The Kisan Credit Card scheme was launched in 1998 based on NABARD’s recommendations.
• Eligibility: The scheme is available not only for agriculture but also for fisheries, dairy farming, animal husbandry, and horticulture farmers.
• Kisan Credit Card (KCC) is a government financial scheme that provides farmers with timely and low-interest credit for purchasing agricultural inputs like seeds, fertilizers, pesticides, crop production, and other farming needs.
• In 2019, the scheme was expanded to cover working capital requirements for animal husbandry, dairy, and fisheries-related activities.

Loan and Interest Rates:

• Short-term agricultural loans up to ₹3 lakh at 7% annual subsidized interest.
• Additional 3% interest rebate on timely repayment, reducing the effective interest rate to 4%.
• Collateral-free loans up to ₹2 lakh.

Recent Reforms:

• In the 2025-26 Budget, the Finance Minister announced an increase in the loan limit under the revised interest subsidy scheme from ₹3 lakh to ₹5 lakh.

Who Can Apply?

• Farmers (Independent, Tenant, Sharecroppers)
• Joint Liability Groups (JLGs) and Self-Help Groups (SHGs)
• Farmers engaged in Fisheries, Dairy, and Animal Husbandry

Major Banks Providing KCC:

• Nationalized Banks (SBI, PNB, BOI, BOB, etc.)
• Rural and Cooperative Banks
• Regional Rural Banks (RRBs)