Farmers typically borrow money from external sources at high interest rates for crop cultivation and other investments.
To alleviate this issue, the government has introduced a Kisan Credit Card, which provides loans at lower interest rates.
In the 2025 Budget, the government announced an important update regarding Kisan Credit Cards: the loan limit for farmers has been increased to Rs. 5 lakh. This change will significantly benefit all farmers.
What is the Kisan Credit Card?
The Kisan Credit Card (KCC) is a unique loan facility designed to help farmers meet their agricultural needs. With this loan, farmers can purchase seeds, fertilizers, pesticides, and other agrarian equipment.
Benefits of the Kisan Credit Card
- Low Interest Rate: The usual interest rate for KCC is 7 percent. However, the government offers interest subsidies to farmers. If the loan is repaid promptly, farmers can access a loan at an effective interest rate of just 4 percent.
- Increased Loan Amount: Previously, the loan limit for farmers was up to Rs. 3 lakh; this has now been raised to Rs. 5 lakh.
- Easy Application Process: Farmers can apply for KCC through government banks, private banks, rural banks, and cooperative societies. The application process is straightforward.
How to Apply for the Kisan Credit Card
Farmers can apply for the Kisan Credit Card either online or offline:
(a) Online Application:
- Visit the Pradhan Mantri Kisan Yojana website or your nearest bank’s website.
- Fill out the application form for the Kisan Credit Card.
- Upload the required documents and apply.
(b) Offline Application:
- Go to the nearest bank branch.
- Collect the application form for the Kisan Credit Card.
- Fill out the form and submit it with the required documents (Aadhaar card, PAN card, land documents, and a passport-size photograph).
Eligibility for the Kisan Credit Card
Farmers engaged in agriculture, fisheries, dairy, animal husbandry, and horticulture can use the Kisan Credit Card facility.
- Must be an Indian citizen.
- The farmer’s age should be between 18 and 75 years.
Importance of the Kisan Credit Card
- The Kisan Credit Card is a crucial financial tool for farmers, enabling them to obtain loans promptly. The increase in the loan amount will further assist farmers in addressing their financial challenges. This scheme provides financial support to farmers and contributes to making agriculture more profitable.