Big news for Indian farmers. In the upcoming budget, there is a possibility that the Kisan Credit Card limit may be raised from Rs 3 lakh to Rs 5 lakh. The last adjustment to the KCC limit occurred back in 2006-07, so many are hopeful that the government will consider this increase once again.
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For quite some time, there has been a strong demand to raise the Kisan Credit Card limit. An increase would greatly benefit farmers, allowing them to manage their farming needs without relying on moneylenders for essentials like seeds and fertilizers.
The Kisan Credit Card Scheme was launched around 26 years ago in 1998. This initiative provides farmers engaged in agriculture and related activities with short-term loans at a 9 percent interest rate.
This scheme is unique because the government offers a 2 percent discount on the interest for the loan. Additionally, farmers who pay off their loans on time receive an extra 3 percent discount as a reward.
As a result, farmers can access this loan at an annual interest rate of just 4 percent. By June 30, 2023, over 7.4 crore individuals had taken advantage of these loans, with outstanding amounts exceeding Rs 8.9 lakh crore.