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Key Points

The Kisan Credit Card scheme has emerged as a transformative financial tool for Indian farmers under the Modi government. Finance Minister Nirmala Sitharaman highlighted the scheme's remarkable reach, with over 465 lakh applications and Rs 5.7 lakh crore in sanctioned credit. The program offers farmers loans up to Rs 5 lakh at an effectively low 4% interest rate, providing crucial support for agricultural inputs and production. This initiative reflects the government's commitment to farmer welfare and agricultural development.

Key Points: Sitharaman Reveals Modi's Kisan Credit Card Boost for Farmers

  • Farmers can access up to Rs 5 lakh loan at 4% interest rate
  • KCC scheme benefits over 7.7 crore farmers nationwide
  • Agriculture budget increased 5X since 2013 under Modi government
  • Loan includes agricultural inputs and crop production support
2 min read

Kisan Credit Card scheme a lifeline for millions of Indian farmers: FM Sitharaman

Finance Minister highlights massive KCC scheme expansion, providing affordable credit to millions of Indian farmers with low-interest loans

"Over 465 lakh applications have been sanctioned with Rs 5.7 lakh crore credit limit - Nirmala Sitharaman"

New Delhi, June 7

Kisan Credit Card (KCC) scheme a lifeline for millions of Indian farmers, said Finance Minister Nirmala Sitharaman on Saturday.

KCC is a banking product that provides farmers with timely and affordable credit for purchasing agricultural inputs such as seeds, fertilisers, and pesticides, as well as for meeting cash requirements related to crop production and allied activities.

In a post on social media platform X, along with an infographic, Sitharaman said “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,” Nirmala Sitharaman's Office stated on X.

The scheme has led to “easy access to short-term crop loans”. About Rs 5.7 lakh crore have also been sanctioned in credit, with “interest as low as 4 per cent with timely repayment” the post added.

With the KCC scheme, farmers can get up to Rs 3 lakh loan at just 4 per cent interest, if repaid on time. An additional Prompt Repayment Incentive of 3 per cent is also being provided to farmers on timely repayment of loans, which effectively reduces the rate of interest to 4 per cent for farmers. Thus, for every one lakh KCC loan, farmers can save up to Rs 9,000 in interest per year.

The government has also increased the subsidised KCC loan limit from Rs 3 lakh to Rs 5 lakh, benefiting approximately 7.7 crore farmers, including fishermen and dairy farmers.

Further, the Financial Minister also lauded the government under PM Modi for increasing the Agriculture Budget and launching various schemes that cater to the welfare of farmers in the country.

“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.

- IANS

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Reader Comments

R
Rahul K.
This is truly a game-changer for our farmers! 👏 The 4% interest rate with timely repayment makes credit so much more accessible. My uncle in Punjab has benefited greatly from KCC - he could finally upgrade his irrigation system. Hope more small farmers become aware of this scheme.
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Priya M.
Good initiative but implementation needs improvement. Many farmers in my village still face bureaucratic hurdles getting these cards. Banks ask for unnecessary documents. The scheme is excellent on paper - now make it equally good on ground!
A
Arjun S.
The 5X increase in agriculture budget shows real commitment to annadata. KCC combined with PM-KISAN is transforming rural economy. My only suggestion - extend similar benefits to landless agricultural workers who contribute equally to farming.
S
Sunita P.
As someone from a farming family, I can vouch for how KCC has reduced dependence on local money lenders charging 24-36% interest! The prompt repayment incentive is smart - teaches financial discipline. More financial literacy camps needed though.
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Vikram D.
The numbers look impressive but what about loan waivers? Many states have announced them, creating confusion among farmers about whether to repay KCC loans. Need clearer national policy on this.
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Neha R.
Great to see inclusion of fishermen and dairy farmers! 🐄🐟 Agriculture isn't just about crops. The increased limit to ₹5 lakh will help during emergencies like last year's unseasonal rains that destroyed our mango crop.

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