New Delhi: Finance Minister Nirmala Sitharaman has announced a major boost for farmers by increasing the interest subvention limit under the Kisan Credit Card (KCC) scheme from Rs 3 lakh to Rs 5 lakh. The announcement was made during the Union Budget 2025 presentation in Parliament on February 1, 2025.
What is the Kisan Credit Card (KCC) Scheme?
The Kisan Credit Card (KCC) scheme was introduced to provide farmers with easy access to credit for their agricultural needs. It offers an interest subvention of 2% and an additional 3% prompt repayment incentive, effectively reducing the interest rate to 4% per annum.
Originally launched in 2004, the scheme underwent revisions in 2012 to simplify processes and introduce Electronic Kisan Credit Cards. Sitharaman stated that 7.7 crore farmers, fishermen, and dairy farmers will benefit from this expansion.
Eligibility for KCC Scheme
Eligible beneficiaries include:
- Owner cultivators, tenant farmers, sharecroppers, and oral lessees
- Self-Help Groups (SHGs) and Joint Liability Groups (JLGs)
Types of KCC Cards
KCC cards are magnetic stripe debit cards with secure PIN-based transactions, compatible with Europay, MasterCard, and VISA. Aadhaar-based biometric authentication is also available for certain banks.
This move is expected to enhance financial inclusion and empower Indian farmers by improving their access to affordable credit.
 scheme was introduced to provide farmers with easy access to credit for their agricultural needs.){kind=link}