Budget 2024-25 Brings Major Boost to Farmers with Higher Credit Access and Support for Allied Sectors
New Delhi, April 2 – In a major policy move under Union Budget 2024-25, Finance Minister Nirmala Sitharaman announced an increase in the loan limit for the Kisan Credit Card (KCC) from ₹3 lakh to ₹5 lakh, providing enhanced financial support to farmers across India. The step is aimed at strengthening the credit flow to the agriculture sector amid rising input costs and expanding farm-related activities.
Why the Kisan Credit Card Matters More Than Ever
The Kisan Credit Card scheme is a flagship initiative that provides short-term and affordable loans to farmers for crop production, purchasing agri-inputs like seeds and fertilizers, and managing allied activities such as dairy, fisheries, and animal husbandry.
Key Benefits of KCC:
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Access to credit for seeds, fertilizers, pesticides, and equipment
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Coverage for working capital needs in allied sectors
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Lower interest rates and timely disbursal
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Insurance coverage under certain schemes
Impact So Far: 7.72 Crore Farmers Benefited
As of December 31, 2024, over 7.72 crore farmers have been issued Kisan Credit Cards, with the total active credit amount crossing ₹10 lakh crore — more than double the ₹4.26 lakh crore recorded in 2014.
Despite the increase in the KCC limit, the Ministry of Agriculture’s core budget has seen a 2.75% cut, bringing it down to ₹1.37 lakh crore. However, the government has significantly increased allocations to:
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Fisheries, Animal Husbandry & Dairy – up by 37% to ₹7,544 crore
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Food Processing – up by 56% to ₹4,364 crore
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Total agri-related outlay for FY 2025-26 is ₹1.45 lakh crore (may exceed ₹1.47 lakh crore with new schemes)
Who is Eligible for the ₹5 Lakh KCC Loan?
The KCC scheme is open to all Indian farmers, with no special category restrictions.
Eligibility Criteria:
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Land-owning farmers
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Tenant and sharecropping farmers
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Minimum age: 18 years | Maximum age: 75 years
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For senior applicants, a co-borrower below 60 may be required
How to Apply Online for the Kisan Credit Card
Farmers can now easily apply for KCC online through any major public or private bank.
Steps to Apply Online:
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Visit the official website of your preferred bank
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Go to the “Kisan Credit Card” section
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Click on “Apply Now”
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Fill out the online form with personal and landholding details
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Submit the form
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The bank will contact you within 2–3 working days for document verification
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Upon successful verification, the KCC will be issued
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.
