Kisan Credit Card New Update: There is good news for crores of farmers across the country. The RBI has given a New Year gift to farmers. Now, farmers can take a larger loan without providing a guarantee. The Reserve Bank of India has increased the limit for guarantee-free loans from Rs 1.6 lakh to Rs 2 lakh, effective from January 1, 2025. This step has been taken to support small and marginal farmers amid rising farming costs. The new directive requires banks nationwide to waive collateral and margin requirements for agricultural and allied activity loans up to Rs 2 lakh for each borrower.
Crores of Farmers to Benefit
According to the Ministry of Agriculture, this decision aims to address the rising costs and improve credit access for farmers. “This measure will significantly benefit more than 86% of small and marginal landholder farmers,” the statement said. Banks have been directed to implement the guidelines promptly and ensure widespread awareness about the new loan provisions. The move will facilitate easy access to Kisan Credit Card (KCC) loans and align with the government’s revised interest subsidy scheme, under which loans up to Rs 3 lakh are provided at an effective interest rate of 4%.
Guarantee-Free Loans Increased to Rs 2 Lakh
Following the RBI’s announcement, farmers can now avail of loans of up to Rs 2 lakh without providing any collateral. This increased limit will be effective from January 1, 2025. The decision aims to help farmers manage rising farming costs more efficiently.
Additional Support for Farmers
In addition, the central government continues to support farmer families through the PM Kisan Samman Nidhi Yojana, providing financial assistance of Rs 6,000 annually. This amount is distributed in three instalments of Rs 2,000 each.
How to Apply for Kisan Credit Card (KCC) Online
- Visit the Bank’s Website
Go to the official website of your preferred bank or government platform for KCC applications. - Fill in Personal Details
Enter your personal information (name, contact, Aadhaar) and farming details (land records, crops). - Upload Documents
Upload required documents such as Aadhaar, PAN, land records, and bank details. - Choose Loan Amount
Select the loan amount (up to Rs 2 lakh without collateral) and loan tenure. - Review and Submit
Check your details and apply. - Track Application
Use the reference number to track your application status. - Receive KCC
Once approved, receive your Kisan Credit Card, either by post or at the bank. - Activate Your Card
Follow bank instructions to activate your KCC.