Today, on February 1, Finance Minister Nirmala Sitharaman presented Budget 2025, focusing on farmers, youth, the poor, and women. The budget highlights the concept of ‘GYAN’—which stands for the poor, youth, food providers, and women’s empowerment.

The government has made several major announcements, especially for farmers, aimed at strengthening the agriculture sector. In this article, we will share all the details about the increase in the Kisan Credit Card loan limit.

There are many important announcements in the new reforms, and one of the most talked-about is the increase in the Kisan Credit Card (KCC) limit. To provide loans to farmers at lower rates, the government has raised the KCC limit from ₹3 lakh to ₹5 lakh.

What is the Kisan Credit Card (KCC)?

The Kisan Credit Card (KCC) scheme was introduced to offer easy loans to farmers for crop production and other agricultural needs. It was launched in 1988 with the collaboration of the Government of India, the Reserve Bank of India (RBI), and NABARD. Through the KCC, farmers can access loans at low interest rates to meet their agricultural needs, such as buying seeds, fertilizers, pesticides, and other essential inputs.

Who Can Avail the KCC?

The KCC scheme is available to all farmers who are engaged in farming, either individually or jointly. This includes landowners, tenant farmers, oral lessees, and farmers involved in partnerships (sharecroppers). Farmers who are part of Self Help Groups (SHG) or Joint Liability Groups (JLG) are also eligible for the scheme.

Key Features of KCC

  1. Direct Transactions: KCC allows farmers to directly transact with input dealers and receive the earnings from the sale of their agricultural produce in their bank accounts.
  2. Magnetic Stripe Card: The KCC is a magnetic stripe card that comes with a Personal Identification Number (PIN) and an ISO IIN number.
  3. ATM and Micro ATM Access: The card works on ATMs and micro ATMs of all banks.
  4. International Standards: The card is issued by Europay, MasterCard, or VISA.
  5. Aadhaar-Linked Banking: Some banks also offer debit cards with biometric authentication under the Aadhaar-linked banking system.

Other Announcements for Farmers

Benefits of Pradhan Mantri Dhan-Dhanya Yojana

The Finance Minister mentioned that around 1.7 crore farmers will benefit from the Pradhan Mantri Dhan-Dhanya Yojana. The scheme focuses on districts with low agricultural production, where farmers need government support.

Loan Facility for Dairy and Fisheries

To boost the dairy and fisheries sectors, the government has introduced a low-interest loan facility of up to ₹5 lakh, aimed at encouraging investment and development in these areas.

Formation of Makhana Board

In support of farmers in Bihar, the government has decided to establish a Makhana Board to promote Makhana (fox nuts) production. This board will help provide better market access and government assistance to Makhana producers.

Facilitates Transactions at Mandis

The KCC card is designed to help farmers transact easily with input dealers and mandis. When farmers sell their produce at mandis and procurement centres, the earnings are directly credited to their bank accounts, ensuring smooth financial transactions.