Big Boost for Farmers! KCC Loan Limit Increased to ₹5 Lakh – Know All Benefits
The Government of India has expanded and upgraded the Kisan Credit Card (KCC) scheme as part of the Union Budget 2025–26, aiming to provide greater access to affordable credit for farmers, fishermen, and animal husbandry workers.
What Is the Kisan Credit Card (KCC) Scheme?
Launched in 1998, the Kisan Credit Card is a government-backed initiative that provides short-term, collateral-free loans to farmers for agricultural needs like seeds, fertilizers, irrigation, and equipment.
What’s New in 2025? (Enhanced KCC Highlights)
| Feature | Enhanced Benefits (2025) |
|---|---|
| Credit Limit | Increased from ₹3 lakh to ₹5 lakh |
| New Beneficiaries | Includes fishermen, dairy farmers, and rural agri-entrepreneurs |
| Loan Type | Short-term crop loans + working capital for allied activities |
| Interest Subsidy | 2% subsidy + 3% prompt repayment bonus (up to 5% off) |
| Repayment Period | Up to 1 year (can be extended) |
| Collateral-Free | Up to ₹1.6 lakh (varies by bank) |
Objective of Enhanced KCC
- Increase credit flow to small and marginal farmers
- Provide easy and low-cost finance for allied sectors
- Reduce dependence on moneylenders or informal loans
- Support self-reliance in agriculture & animal husbandry
Who Can Apply?
Eligible categories under Enhanced KCC:
- Farmers (individuals or groups)
- Tenant or sharecropper farmers
- Fishermen (inland or marine)
- Dairy farmers and poultry owners
- Rural entrepreneurs in agri-allied sectors
Documents Required
- Aadhaar Card
- Land documents or lease papers
- Bank account with passbook
- Passport-size photo
- Income/crop details (if required by bank)
Where to Apply?
- Nearby bank branch (nationalized, cooperative, or regional rural bank)
- Common Service Centers (CSCs)
- Some banks also offer online KCC applications via their website or mobile apps
Important Update
- Over 7.7 crore farmers are expected to benefit from the enhanced KCC rollout in 2025.
- The scheme aims to bring more fishermen and dairy workers into the formal credit system.
Conclusion
The Enhanced Kisan Credit Card Scheme 2025 is a powerful tool for boosting rural credit access, helping farmers and allied workers meet their financial needs without stress. With a higher limit and wider reach, KCC is now more inclusive and impactful than ever.
