Budget 2025: Kisan Credit Card; What is new loan limit for farmers? Check eligibility, benefits, and scheme details
Finance Minister Nirmala Sitharaman during the Union Budget 2025-26 session, announced an increase in the subsidised Kisan Credit Card (KCC) loan limit, targeting everything from unemployment to crop productivity enhancement across the country. Thus, let’s understand what is Kisan Credit Card, and what will be new loan limit for farmers.
In a major farm push, Finance Minister Nirmala Sitharaman has announced a raise in the Kisan Credit Card (KCC) limit during the Union Budget 2025 session. It will target everything from unemployment to crop productivity enhancement across the country. Therefore, let’s find out what is going to be the new loan limit for farmers, eligibility, benefits, and the rest details about the scheme.
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What is Kisan Credit Card?
The Kisan Credit Card (KCC) Scheme was introduced in 1998 to provide adequate and timely credit to the farmers for their agricultural operations. It offers interest subvention of 2 per cent and a Prompt Repayment Incentive of 3 per cent to the farmers, thus making the credit available at a very subsidised rate of 4 per cent per annum.
What are objectives of Kisan credit card?
To meet the short term credit requirements for the cultivation of crops
To cover Post-harvest expenses
To produce a marketing loan
Kisan credit card objectives
To meet the consumption requirements of farmer's household
Working capital for maintenance of farm assets and activities allied to agriculture
Investment credit requirement for agriculture and allied activities
What are benefits of Kisan credit card?
Term loans for investment
Long term loan limit
Maximum permissible limit
Eligibility for kisan credit card (KCC) scheme
A magnetic stripe card with PIN (Personal Identification Number) with an ISO IIN (International Standards Organization International Identification Number) to enable access to all banks ATMs and micro ATMs
In cases where the Banks would want to utilize the centralized biometric authentication infrastructure of the UIDAI (Aadhaar authentication), debit cards with magnetic stripe and PIN with ISO IIN with biometric authentication of UIDAI can be provided.
Debit Cards with magnetic stripes and only biometric authentication can also be provided depending on the customer base of the bank. Till such time, UIDAI becomes widespread, if the banks want to get started without inter-operability using their existing centralized biometric infrastructure, banks may do so
Types of Kisan credit card
Banks may choose to issue EMV (Europay, MasterCard and VISA, a global standard for the interoperation of integrated circuit cards) and RUPAY compliant chip cards with magnetic stripes and pins with ISO IIN.
Further, biometric authentication and smart cards may follow the common open standards prescribed by IDRBT and IBA. This will enable them to transact seamlessly with input dealers and also enable them to have the sales proceeds credited to their accounts when they sell their output at mandies, procurement centres, etc.
What is new loan limit for farmers?
Finance Minister Nirmala Sitharaman announced in Union Budget 2025, an increase in the subsidised Kisan Credit Card loan limit to Rs 5 lakh from the existing Rs 3 lakh, benefiting 7.7 Crore farmers.
How to apply for Kisan credit card (KCC)?
Visit the website of the bank you wish to apply for the Kisan credit card scheme.
From the list of options, choose the Kisan Credit Card.
On clicking the option of ‘Apply’, the website will redirect you to the application page.
Fill out the form with the required details and click on ‘Submit’.
In doing so, an application reference number will be sent. If you are eligible, the bank will get back to you for the further process within 3-4 working days.
What documents are required to apply for Kisan credit card (KCC) scheme?
Application Form.
Two Passport Size Photographs.
ID proof such as Driving License / Aadhar Card / Voter Identity Card / Passport.
Address Proof such as Driving License, Aadhar Card.
Documents required for Kisan credit card (KCC) scheme?
Proof of landholding duly certified by the revenue authorities.
Cropping pattern (Crops grown) with acreage.
Security documents for loan limit.
Any other document as per sanction.