Massive ₹10.2 Lakh Crore Outstanding Under Farm Credit Scheme, 7.72 Crore KCCs Active Nationwide

Mumbai: More than 7.72 crore Kisan Credit Cards (KCC) are currently active across India, with total outstanding loans reaching around Rs 10.2 lakh crore, according to a government note released on March 11. The KCC scheme plays a major role in providing easy and affordable credit to farmers across the country.

The scheme helps farmers get timely loans for farming and related activities without complicated procedures. It mainly supports small and marginal farmers who often face difficulty in accessing formal credit from banks.

Affordable Credit for Farmers

The government said the Kisan Credit Card scheme provides affordable and collateral-free credit to farmers, including tenant farmers, sharecroppers, self-help groups (SHGs) and joint liability groups (JLGs).

Under the Modified Interest Subvention Scheme (MISS), the crop loan limit under KCC has been increased to Rs 5 lakh. At the same time, the collateral-free credit limit per borrower has been raised to Rs 2 lakh from the earlier Rs 1.6 lakh. These changes came into effect from January 1, 2025.

Farmers can get short-term crop loans of up to Rs 3 lakh at an interest rate of 7 percent. If the loan is repaid on time, the government provides an additional 3 percent interest subsidy. This reduces the effective interest rate for farmers to just 4 percent.

Support for Allied Agricultural Activities

The scheme has also expanded to cover allied sectors. The credit limit for fisheries and other related activities has been increased from Rs 2 lakh to Rs 5 lakh.

This move aims to improve access to institutional credit for activities such as dairy farming, poultry, fisheries and beekeeping. These sectors are increasingly becoming important sources of income for rural households.

Wide Banking Network for Credit Delivery

At present, 457 banks are connected to the KCC system. This includes 37 commercial banks, 46 regional rural banks and 374 cooperative banks.

Across these institutions, more than 1,998.7 lakh KCC applications have been processed. Cooperative banks have played a major role in this effort by processing around 1,030 lakh applications, helping expand farm credit at the grassroots level.

Digital Platforms and Simpler Application Process

The government has also introduced several steps to simplify the application process. A one-page KCC application form has been launched with basic details already filled using PM-KISAN records.

Farmers can submit applications through banks or with the help of Common Service Centres (CSCs), which digitally send the applications to banks.

To improve monitoring and transparency, the government launched the Kisan Rin Portal in September 2023. The portal tracks farmer profiles, loan disbursements, interest subsidy claims and the overall performance of the scheme.

Introduced in 1998, the Kisan Credit Card scheme continues to support farmers by providing easy access to institutional credit and helping strengthen rural livelihoods.