Good News for Farmers: Get Up to ₹5 Lakh Loan to Buy a Tractor Under Kisan Credit Card Scheme

Key Highlights:

• Farmers can get up to ₹5 lakh loan under the KCC scheme.

• Low interest rates between 4% to 7% offered.

• Timely repayment gives a 2% to 3% interest subsidy.

• No guarantee required in some cases.

• Apply online or offline through banks and CSC centers.

To support farmers and promote modern farming, the government offers an affordable loan of up to ₹5 lakh through the Kisan Credit Card (KCC) scheme. This scheme makes it easier for farmers to buy tractors and other agricultural machinery at low interest rates with the benefit of subsidies. Here's everything you need to know in simple words.

Also Read: Budget 2025-26: KCC Loan Limit Likely to Increase to ₹5 Lakh, Big Relief for Farmers

What Is the Kisan Credit Card Scheme?

The Kisan Credit Card scheme is a government initiative that provides financial help to farmers for farming-related needs. It offers loans for activities like buying seeds, fertilizers, and machinery, including tractors.

Earlier, the loan limit under this scheme was ₹3 lakh. But now, the government has increased it to ₹5 lakh, making it more helpful for farmers who want to purchase tractors.

Benefits of Taking a Tractor Loan Through KCC

• Low Interest Rates: Farmers get loans at interest rates between 4% to 7%, which is lower than regular bank loans.

• Subsidy Benefit: If the loan is repaid on time, the government gives an interest subsidy of 2% to 3%.

• No Guarantee in Some Cases: In certain cases, the loan is available without any security.

• Better Income: With a tractor, farmers can do their work faster, save time and money, and increase their productivity and income.

Also Read: Maharashtra Government Increases Tractor Subsidy for Farmers: Get Up to ₹2 Lakh Support

Where Can You Apply for This Loan?

You can get a Kisan Credit Card and apply for a tractor loan from the following banks:

• State Bank of India (SBI)

• Punjab National Bank (PNB)

• Bank of Baroda

• Canara Bank

• Gramin Banks & Co-operative Banks

• Union Bank of India

Documents Needed to Apply for a Tractor Loan

Here are the basic documents you need to apply for a KCC tractor loan:

• Aadhaar card

• PAN card

• Land ownership documents (like Khasra, Khatauni)

• Details about your crops

• Passport-size photo

• Bank passbook copy

• Proof of residence

How to Apply for a Tractor Loan Using a Kisan Credit Card

You can apply both online and offline:

• Online: Visit www.pmkisan.gov.in or the official website of your bank.

• Offline: Visit your nearest bank branch or Common Service Center (CSC) and submit the application with required documents. CSCs also help with digital form filling and uploading documents.

For more help, you can contact your nearest bank.

Also Read: Farmers to Get 75% Subsidy for Building Onion Storage Warehouses in Bihar

CMV360 Says

With the help of the Kisan Credit Card scheme, farmers now have a golden opportunity to buy a tractor at low interest rates and flexible EMIs. Whether buying new or used tractors, this scheme can improve farm productivity and income with reduced financial stress.