Kisan Credit Card (KCC) Scheme: Bihar Government to Provide Loans to 90,000 Farmers

Key Highlights

• Bihar government targets providing KCC loans to 90,000 farmers in 2024-25.
• Loans up to ₹3 lakh at just 4% interest.
• ₹270 crore to be distributed among farmers in Bihar.
• Interest subsidies and early repayment incentives are available.
• Special support for betel farmers with ₹5 crore funding.

The Government of Bihar has announced that it will distribute loans under the Kisan Credit Card (KCC) Scheme to 90,000 farmers in 2024-25. This initiative is part of the efforts by both the central and state governments to support farmers with affordable financial assistance for agriculture needs.

Also Read: 50% Subsidy on Pea Seeds for Bihar Farmers: Apply Now for Benefits

What is the Kisan Credit Card Scheme?

The Kisan Credit Card (KCC) Scheme, introduced by the Government of India in 1998, aims to provide farmers with easy access to loans at low interest rates. The scheme helps farmers purchase fertilizers, seeds, and other farming equipment. Farmers can borrow up to ₹3 lakh under this scheme at an interest rate of just 4%, making it one of the most affordable loan options for farmers.

How to Apply for a KCC Loan?

Farmers interested in applying for a KCC loan can visit their nearest bank or cooperative institution. They will need to submit documents related to their land ownership and complete the loan application process. After the application is processed, farmers can access the loan and use it to fund their agricultural needs.

Also Read: Government Offers 75% Subsidy to Farmers for Growing Hybrid Vegetables in Bihar

Loan Terms and Interest Rates

Under the KCC Scheme, the interest rate is set at 9%, but the central government provides a subsidy of 2%, reducing the effective rate to 7%. If farmers repay the loan within a year, they receive an additional 3% incentive, bringing the final interest rate down to just 4%. This makes the KCC loan one of the most affordable financial options for farmers in India.

Target to Support 90,000 Farmers in Bihar

In Bihar, the state government has set a target to provide KCC loans to 90,000 farmers in 2024-25, an increase of 10,000 farmers compared to the previous year. A total of ₹270 crore will be distributed to these farmers under the scheme. The government's goal is to expand this support further, with plans to reach 500,000 farmers by 2027-28.

Also Read: Sugarcane Farming: Bihar Government Offers 90 Lakh Subsidy for Advanced Farming Techniques

Interest Waiver for Farmers

In addition to offering low-interest loans, the Bihar government is also working on waiving the interest for certain farmers. In late 2023, the government announced a 90% interest waiver on cooperative loans for 2 lakh farmers. This means these farmers will only need to repay 10% of the interest on their loans, easing their financial burden.

Support for Betel Farmers in Bihar

The Bihar government has also introduced a special scheme for betel leaf farmers. Under this scheme, ₹5 crore has been allocated to expand betel cultivation in 15 districts of the state. Farmers in these areas will be eligible for KCC loans to support their betel cultivation. These districts include Aurangabad, Gaya, Nalanda, and others.

Also Read: Mushroom Farming in Bihar: Get Rs 10 Lakh Subsidy on Mushroom Cultivation

CMV360 Says

The Kisan Credit Card Scheme is a vital initiative that helps farmers access affordable loans to boost agricultural productivity. With increased targets for 2024-25 and additional support for betel farmers, the Bihar government is working hard to provide financial aid and ensure the prosperity of farmers in the state. If you're a farmer looking for financial assistance, the KCC loan scheme is a great option to consider.