Operative Kisan Credit Card Amount Crosses ₹10 Lakh Crore

In a substantial increase, the amount of operative 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 indicates a significant rise in the quantum of affordable working capital loans provided to farmers for agriculture and allied activities. It also reflects deeper credit penetration in agriculture and reduced dependency on non-institutional credit.

The Kisan Credit Card (KCC) is a banking product designed to provide farmers with timely and affordable credit for purchasing agricultural inputs such as seeds, fertilizers, and pesticides. Additionally, the KCC helps meet cash requirements related to crop production and allied activities. In 2019, the scheme was expanded to cover the working capital needs of allied sectors, including animal husbandry, dairy, and fisheries.

Under the Modified Interest Subvention Scheme (MISS), the central government provides an interest subvention of 1.5% to banks, enabling them to offer short-term agricultural loans through KCCs of up to ₹3 lakh at a concessional interest rate of 7% per annum.

Furthermore, a Prompt Repayment Incentive (PRI) of 3% is granted to farmers who repay their loans on time, effectively reducing the interest rate to 4% for such borrowers. Loans of up to ₹2 lakh are extended on a collateral-free basis, ensuring hassle-free access to credit for small and marginal farmers.

The 2025-26 Budget has increased the loan limit under the Modified Interest Subvention Scheme from ₹3 lakh to ₹5 lakh, further benefiting farmers.

As of December 31, 2024, a total of ₹10.05 lakh crore has been disbursed through operative KCCs, benefiting 7.72 crore farmers.

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