The Expansion of Kisan Credit Card (KCC) Scheme in Indian Agriculture
| Category | Details |
|---|---|
| Why in News? | The operative Kisan Credit Card (KCC) loan amount has surpassed ₹10.05 lakh crore in December 2024, benefiting 7.72 crore farmers. |
| What is KCC? | The Kisan Credit Card (KCC) is a banking product that provides farmers with affordable short-term credit for agricultural and allied activities. |
| Growth of KCC Loans | The operative KCC loan amount has grown from ₹4.26 lakh crore in March 2014 to ₹10.05 lakh crore in December 2024, reflecting the deepening of institutional credit in agriculture. |
| Modified Interest Subvention Scheme (MISS) | The government provides an interest subvention of 1.5% to banks for short-term agricultural loans through KCC. Farmers can avail loans at 7% interest, which is further reduced to 4% with a 3% Prompt Repayment Incentive (PRI). |
| Collateral-Free Loans | Loans up to ₹2 lakh under KCC are collateral-free, promoting financial inclusion for small and marginal farmers. |
| Budget 2025-26 Announcement | The loan limit under the Modified Interest Subvention Scheme has been increased from ₹3 lakh to ₹5 lakh to enhance financial support for farmers. |