Kisan Credit Card Rules Revised: The new KCC rules of RBI, which will come into effect from January 1, 2027, will make it easier for farmers to take loans and will better meet the needs related to farming.

Kisan Credit Card Rules Revised: To provide easy and timely access to loans to the country's farmers, the Reserve Bank of India (RBI) has issued new guidelines under the Kisan Credit Card (KCC) scheme. This new framework will apply to commercial banks, small finance banks, regional rural banks (RRBs), and rural cooperative banks. The new rules will apply to loans approved after January 1, 2027, while older loans will continue to operate under the previous system.

RBI says that the purpose of these changes is to provide adequate financial assistance to farmers for farming and related activities through a simple process.

What has changed in the KCC scheme?

Under the new rules, Kisan Credit Cards will be offered as a combined credit facility with a tenure of six years. This will allow farmers to access loans for both farming and other needs.

The following needs will now be covered under KCC:

• Short-term loans for crop cultivation
• Activities like animal husbandry, fisheries and beekeeping
• post-harvest expenses
• household needs of a farmer family
• Maintenance of farm equipment and assets
• Crop, health and accident insurance
• Marketing of agricultural products
• Investment in agriculture and allied sectors

How was the crop season decided?

For the first time, RBI has standardized the crop season for KCC.

Crop season will mean the entire period from sowing to harvesting and selling of the crop.

How much loan will be available without guarantee?

The relief for farmers is that RBI has not made mortgage and 'line-height:normal'>Key rules:

• No guarantee is required for agricultural loans up to Rs 2 lakh.
• If farmers wish, they can voluntarily mortgage gold or silver.
• Banks will take decisions on loans above Rs 2 lakh as per their policy.
• In some special cases, guarantee can also be waived on loans up to Rs 3 lakh.

RBI has also clarified that at present there is no plan to increase the limit of unsecured loans.

Which farmers will get the benefit?

This scheme will not be limited to landowning farmers. Its scope will include:

• Owner farmer
• sharecropper farmer
• tenant farmer
• oral lessee
• Self Help Groups (SHGs)
• Joint Liability Group (JLG)

Banks will determine the repayment period based on crop cycles and income, and loan limits will be reviewed and renewed periodically.

PC: Prabhat Khabar