Good news is coming for farmers! The Narendra Modi government is considering raising the loan limit for the Kisan Credit Card (KCC).
The Department of Financial Services, in collaboration with the Ministry of Agriculture and Farmers Welfare, is working on this change.
They are also looking into launching a scheme similar to Atmanirbhar Nidhi (PM-Svanidhi) for sharecroppers.
Current Details of the KCC Scheme
The Kisan Credit Card (KCC) scheme was introduced in 1998 to provide farmers with timely and adequate loans for agricultural activities.
Currently, the maximum loan limit under the scheme is Rs 3 lakh.
As of now, the total outstanding loan in KCC accounts is Rs 9.81 lakh crore.
Farmers benefit from a 2% interest discount and a 3% quick repayment incentive, bringing the effective interest rate down to 4% per annum.
RBI’s Recent Announcement
Last month, the Reserve Bank of India (RBI) extended the Modified Interest Subsidy Scheme (MISS) for short-term agricultural loans through Kisan Credit Cards.
This extension allows eligible farmers to secure loans up to Rs 3 lakh at concessional interest rates during the current financial year.
Recent Developments
The Reserve Bank of India (RBI) recently extended the Modified Interest Subsidy Scheme (MISS) for short-term loans for agriculture and allied activities.
This extension allows eligible farmers to access loans up to Rs 3 lakh at reduced interest rates during the current financial year.
