The Government of India has taken another major step to strengthen financial support for farmers by increasing the credit limit under the Kisan Credit Card (KCC) scheme. This move is aimed at ensuring that farmers do not face financial hurdles while managing agricultural activities and allied businesses.

With the revised limit, the Kisan Credit Card has now become one of the most useful government-backed credit facilities, offering loans of up to ₹5 lakh at highly subsidised interest rates. The decision is expected to provide relief to millions of farmers across the country.

What Is the Kisan Credit Card Scheme?

The Kisan Credit Card scheme is a flagship initiative of the central government that provides farmers with easy access to institutional credit. Under this scheme, eligible farmers are issued a credit card by banks, which they can use to meet short-term agricultural expenses such as seeds, fertilisers, irrigation, and other farming needs.

The core objective of the scheme is to ensure that lack of funds does not interrupt farming activities or force farmers to depend on informal and high-interest borrowing sources.

When Was the Scheme Introduced?

The Kisan Credit Card scheme was originally launched in 1998. Over the years, it has undergone several improvements to meet the changing needs of farmers. A significant expansion took place in 2019, when the scope of the scheme was widened to include allied activities such as animal husbandry, dairy farming, and fisheries.

This expansion ensured that farmers engaged in multiple income-generating activities could also benefit from affordable credit.

Credit Limit Increased to ₹5 Lakh

Earlier, the maximum loan limit under the Kisan Credit Card scheme was ₹3 lakh. However, in the Union Budget 2025-26, the government announced a major revision.

Under the Modified Interest Subvention Scheme (MISS), the loan limit through KCC has been increased from ₹3 lakh to ₹5 lakh. This means farmers can now access higher credit without additional financial burden.

Interest Rate Benefits Explained

The Kisan Credit Card scheme offers one of the lowest effective interest rates available to farmers:

• Banks provide short-term working capital loans up to ₹5 lakh under the scheme.

• The government gives interest subvention of 1.5% to banks on loans up to ₹3 lakh.

• Farmers who repay their loans on time receive an additional 3% prompt repayment incentive.

Because of these benefits, the effective interest rate for farmers comes down to just 4% per annum, making it an extremely affordable credit option.

No Processing Fee Up to ₹3 Lakh

Another major advantage of the KCC scheme is the zero processing charge on loans up to ₹3 lakh. This further reduces the financial burden on farmers and ensures easier access to credit.

Documents Required to Apply

To apply for a Kisan Credit Card, farmers need to submit the following documents:

• Aadhaar card (mandatory)

• Identity proof and address proof

• Land ownership or land-related documents

• Passport-size photographs

• Bank account details

• A self-declaration stating that there is no default with any other bank

How to Apply for KCC?

Farmers can apply for the Kisan Credit Card through both online and offline modes:

• Online: Applications can be submitted via government portals such as fasalrin.gov.in and jansamarth.in

• Offline: Farmers can visit their nearest bank branch and apply directly

The process has been simplified to ensure quicker approvals and wider reach.

Why This Move Matters

By raising the Kisan Credit Card limit to ₹5 lakh, the government has sent a strong signal of support to the agricultural sector. The enhanced limit will help farmers manage rising input costs, invest in modern farming techniques, and expand allied activities without worrying about high-interest loans.

The Kisan Credit Card scheme, with its increased credit limit, low interest rate, and easy application process, has become a powerful financial tool for farmers. Backed by the central government, it ensures security, affordability, and stability for those who form the backbone of India’s economy.

For farmers seeking reliable and low-cost credit, the upgraded KCC scheme is a timely and highly beneficial initiative.