Kisan Credit Card Scheme 2025: Farmers Can Now Get Loans Up to ₹5 Lakh, Campaign Till July 31

Key Highlights:

• KCC loan limit increased from ₹3 lakh to ₹5 lakh.

• Campaign to enroll farmers is open till July 31.

• Agriculture Minister directs banks for a timely manner.

• Loans are available at low interest rates, with a subsidy for timely payment.

• Insurance and personal accident cover are included for KCC holders.

The government has expanded the Kisan Credit Card (KCC) Scheme to support more farmers with easier access to loans. The credit limit has been increased from ₹3 lakh to ₹5 lakh, and a special campaign is running till July 31 to ensure that every eligible and needy farmer can benefit from the scheme.

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Aim of the Kisan Credit Card Scheme

The Kisan Credit Card Scheme was launched in 1998–99 to provide low-interest loans to farmers for agriculture-related needs. The objective is to reduce farmers dependency on private moneylenders who charge high interest rates. With the KCC, farmers can access formal credit easily and at affordable rates.

₹5 Lakh Loan Limit Now Available

Earlier, farmers could take loans up to ₹3 lakh under this scheme. Now, the limit has been raised to ₹5 lakh. The Uttar Pradesh government is running a mega campaign until July 31, 2025, to ensure that maximum farmers are included in the scheme.

Agriculture Minister Surya Pratap Shahi has instructed banks to speed up the process and issue KCCs to all eligible farmers. Banks have been told to work on a "war footing" and ensure the timely distribution of credit.

Strict Action Against Non-Responsive Bank Officials

During a review meeting with bank and insurance company representatives, the Agriculture Minister expressed dissatisfaction with the current pace of KCC distribution. He asked all banks to provide a detailed report of KCCs issued so far and warned of strict action if unsatisfactory responses were received.

Officials not complying with or delaying the process may face disciplinary measures.

Need for Better Awareness and Insurance Support

The minister also stressed the importance of extensive publicity of the Kisan Credit Card Scheme through the media so that more farmers become aware and apply for it.

He criticized insurance companies for not having a proper presence at the tehsil levels and directed them to open offices in all tehsils to assist farmers properly. This will also ensure timely support in case of crop failure or natural disasters.

Also Read: Big Boost for Indian Farmers: Cabinet Approves PM Dhan-Dhanya Agriculture Scheme: 36 schemes to be merged under a ₹24,000 crore mission; 1.7 crore farmers to benefit

Benefits and Features of the Kisan Credit Card

• Farmers can get up to ₹5 lakh as loan.

• Loans up to ₹1 lakh are available without any guarantee.

• Interest rate for loans up to ₹3 lakh is 7%, which reduces to 4% with timely repayment.

• Card validity is usually 5 years, with annual renewals required.

• Credit limit depends on the farmer’s credit score and the bank’s assessment.

• A passbook and cheque book with a ₹25,000 credit limit is provided.

• Loans from cooperative societies may have lower interest rates (around 7%) due to government subsidies.

• Farmers with a good repayment record can avail of higher loan amounts and additional subsidies.

Insurance Benefits for KCC Holders

• KCC holders can get insurance under the National Crop Insurance Scheme.

• Coverage includes crop loss due to natural disasters or pest attacks.

• Farmers below 70 years of age also get personal accident cover.

How to Apply for a Kisan Credit Card

Farmers can apply for the KCC by visiting any nationalized, cooperative, or regional rural bank. The bank will verify:

• Land ownership

• Crop pattern

• Income and credit history

If all criteria are met, the Kisan Credit Card will be issued.

Also Read: ₹15,351 Per Acre Subsidy on Paddy Cultivation: Know How to Avail

CMV360 Says

The expansion of the Kisan Credit Card scheme to ₹5 lakh and the ongoing state-level campaign till July 31 aim to provide timely financial support to farmers. With proper awareness, banking cooperation, and support from insurance companies, this scheme has the potential to significantly reduce farmers dependence on private lenders and improve agricultural productivity across the country.