Finance Minister Nirmala Sitharaman is presenting her record 8th consecutive Union Budget in Parliament. Sitharaman announced that the Kisan credit card loan limit will be increased from Rs 3 lakh to Rs 5 lakh.
“Kisan Credit Card facilitates short-term loans for 7.7 crore farmers, fishermen and dairy farmers. The loan limit under modified interest subvention scheme will be enhanced from Rs 3 lakh to Rs 5 lakh for loans taken through the KCC,” she said.
“For self-reliance in urea production, our government had reopened three dormant urea plans in the eastern region to further augment urea supply – a plant with annual capacity of 12.7 lakh metro tonnes will be set up at Namrup in Assam,” Sitharaman said in her speech.
As of March 2024, there were 7.75 crore active KCC accounts with a total outstanding loan of Rs 9.81 lakh crore, as per the latest Economic Survey.
Originally introduced to support farmers’ short-term working capital needs, KCC has played a crucial role in reducing dependence on informal credit sources.
Launched in 1998, the Kisan Credit Card (KCC) scheme has been a vital initiative to simplify credit access for farmers. Based on land holdings, it provides an easy and affordable way to secure funds for agricultural inputs like seeds, fertilizers, and pesticides, along with other production expenses. Expanding the KCC limit is expected to further empower farmers, helping them meet financial requirements for both crop cultivation and allied activities.