Kisan Credit Card scheme limit: Farmers may get good news in Budget 2021- amount likely to get hiked

Kisan Credit Card scheme limit: Kisan Credit Card scheme has been launched with an objective to save farmers from moneylenders and provide timely loan for their farming activities. Under this scheme, farmers are given loan of up to Rs 3 lakh. It is being reported that the government might increase this loan limit in the Union Budget 2021.  

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Finance Minister Nirmala Sitharaman will table Union Budget 2021 in the Parliament on February 1. If sources are to be believed, the government is mulling to make big announcement for farmers in the Union Budget 2021. The matter also holds significance in the backdrop of farmers protest and it is anticipated that the government might increase the Kisan Credit Card scheme limit to appease the farming community. 

Loan taken against Kisan Credit card attracts very nominal interest rate of 7 per cent. But if a farmer pays the loan amount within a year, this gets even more attractive as the farmer in this case will have to pay only 4 per cent interest rate for the loan taken under Kisan Credit card scheme.   

Some features and Benefits of Kisan Credit Card are listed below
*Farmers get investment credit for agricultural requirements such as dairy animals, pump sets etc.
*Farmers can avail a loan of up to Rs.3 lakh and also avail produce marketing loans. No collateral is required for loans amounting up to Rs.1.60 lakh.
*Credit is available for a period of up to 3 years and repayment can be made once the harvest season in over.
*Farmers get Insurance coverage for KCC up to Rs.50,000 in the case of permanent disability or death. A cover of Rs.25,000 is also given in the case of other risks.
*Single credit facility/ term loan for all agricultural and ancillary requirements.
*Assistance in the purchase of fertilizers, seeds, etc. as well as in availing cash discounts from merchants/ dealers.