Apart from the Kisan Credit Card (Budget 2025), the government is also considering a plan to improve the Pradhan Mantri Fasal Bima Yojana. According to officials, the role of state governments can be limited to make the process of compensation under the crop insurance scheme faster and simpler.
Kisan Credit Card Scheme (Budget 2025) Kisan Credit Card Scheme was launched in 1998. The objective of this scheme is to provide accessible and affordable credit to farmers for crop production and agriculture-related activities. At present, an interest rate of 9% is applicable on Kisan Credit Card (Budget 2025). However, the government provides an interest subsidy of 2%, and farmers who repay the loan on time get an additional 3% rebate. In this way, farmers can take loans at an interest rate of only 4%.
Why is there a need to raise the borrowing limit?
"A senior official said," "The cost of farming has increased significantly over the years, while there has been no change in the credit limit of Kisan Credit Card (Budget 2025) for a long time." With an aim to increase the income of farmers and strengthen the agriculture sector, the government is considering increasing this limit.
The Potential Benefits of Raising the Credit Limit
Vishal Sharma, CEO of Fintech company Advarisk, said, "This change is very important in view of the rising cost of agriculture. With this, farmers will be able to use better equipment, advanced seeds and agricultural technology. This will also increase their income.
Shaji K V welcomed NABARD (National Bank for Agriculture and Rural Development) Chairman Shaji KV also welcomed the move. "This scheme is not only for big farmers, but small and medium farmers, cattle rearers and fishermen will also benefit from it," he said. Agriculture is not limited to crop production (Budget 2025), but it is also necessary to develop other activities related to it.
Current Status and Data
As per NABARD data, there were over 7.4 crore active accounts under Kisan Credit Cards (Budget 2025) as on June 30, 2023, with an outstanding debt of Rs. 8.9 lakh crore. Till October 2024, cooperative and regional rural banks had issued 167.53 lakh Kisan Credit Cards (Budget 2025) with a total credit limit of Rs. 1.73 lakh crore. These included a credit limit of Rs 10, 453.71 crore for dairy farmers and Rs 341.70 crore for fishermen.
