Kisan Credit Card Loan Disbursement Crosses ₹10 Lakh Crore Benefiting 7.72 Crore Farmers

New Delhi- According to the latest government data, the amount disbursed under 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 reflects increased access to institutional credit in agriculture and reduced dependence on non-institutional borrowing.

As of December 31, a total of ₹10.05 lakh crore has been disbursed under operative KCC accounts, benefiting 7.72 crore farmers. The Finance Ministry stated that this surge highlights the availability of affordable working capital loans for agricultural and allied activities.

KCC is a banking product designed to provide timely and low-cost credit for purchasing agricultural inputs such as seeds, fertilizers, and pesticides, as well as for meeting cash needs related to crop production. In 2019, the scheme was expanded to cover working capital requirements for livestock, dairy, and fisheries.

Under the Modified Interest Subvention Scheme (MISS), banks offer short-term agricultural loans up to ₹3 lakh at a subsidized interest rate of 7% per annum, with a 1.5% interest subvention provided by the government. Farmers repaying loans on time receive an additional 3% prompt repayment incentive, effectively reducing the interest rate to 4%.

The ministry further stated that loans up to ₹2 lakh are provided without collateral, ensuring easy access to credit for small and marginal farmers. In the Union Budget 2025-26, the loan limit under the revised interest subvention scheme has been increased from ₹3 lakh to ₹5 lakh, enhancing benefits for farmers.

The budget also reflects the government’s increased support for agriculture under Prime Minister Narendra Modi’s leadership, with the agricultural allocation rising sixfold from ₹21,933.50 crore in 2013-14 to ₹1,27,290 crore in 2025-26.