Ahead of the Budget 2025 announcement, various sectors, including agriculture, are eagerly anticipating favorable measures from the government. According to a report by Business Standard, the government is considering increasing the Kisan Credit Card (KCC) limit from the current ₹3 lakh to ₹5 lakh.
Potential Increase in KCC Limit
The KCC limit, which has remained unchanged for a significant time, is under review for an increase. Officials suggest that the government may announce this move in the budget to strengthen the rural economy. This step aims to provide farmers with greater financial flexibility and support.
Affordable Loans for Farmers
Under the KCC scheme, farmers currently receive loans at an interest rate of 9%. The government offers a 2% subsidy on these loans, and an additional 3% discount is provided for timely repayment. As a result, farmers effectively get loans at just 4% interest.
Background of the KCC Scheme
The Kisan Credit Card scheme was launched in 1998 and has since benefited millions of farmers across the country. It provides financial assistance for agricultural needs, enabling farmers to access credit easily and affordably.
Expectations Beyond KCC
Farmers are also looking forward to announcements regarding other schemes like the Crop Insurance Scheme and the Pradhan Mantri Kisan Samman Nidhi Yojana. Under the latter, eligible farmers currently receive ₹6,000 annually in three installments of ₹2,000 each. Any updates or enhancements to these programs are likely to be closely watched in the upcoming budget.
The government’s focus on rural development and agriculture through these measures is expected to provide much-needed support to farmers and bolster the agricultural sector.
