New Delhi: The Indian government has made a big announcement for the farmers in the budget of FY 2025-26. Now the limit of loan available on Kisan Credit Card (KCC) has been increased from Rs 3 lakh to Rs 5 lakh. This step of the government has been taken to provide financial help to the farmers on cheap interest rates and to increase their agricultural production capacity.
What is the interest rate of KCC loan?
Farmers often have this question that how much interest rate has to be paid on the loan available on Kisan Credit Card? Let’s know about it in detail:
Interest Rate: The normal interest rate on KCC loan is 7%.
Subsidy: If a farmer repays the loan on time, he gets a government subsidy of 3%. This means that the farmer gets the loan at an interest rate of only 4%.
Loan Amount: Earlier, a loan of up to Rs 3 lakh was available on KCC, but now this limit has been increased to Rs 5 lakh.
Loan Period: This loan is given for a period of up to 5 years.
Benefits of Kisan Credit Card
- Cheap interest rate: KCC loan is available at a very low interest rate as compared to normal loans.
- Easy loan process: It can be applied easily both online and offline.
- Zero collateral: There is no need to keep any kind of mortgage on loan up to Rs 3 lakh.
- Flexible repayment: Farmers are given a long period to withdraw money.
- Agriculture-related expenses: Money from this loan can be used for seeds, fertilizer, pesticide, agricultural aid and other essential purchases.
How to apply for KCC?
If you want to apply for Kisan Credit Card, there are two ways:
- Online: You can apply for KCC by visiting the bank’s website or PM Kisan portal.
- Offline: You can also apply by going to the nearest bank branch and filling the form.
Conclusion
Kisan Credit Card Yojana is a very beneficial scheme for farmers, in which facilities like low interest rate, subsidy and easy loan process are given. Now that the loan limit has increased to 5 lakhs, more farmers will be able to take advantage of it. If you are a farmer and want to take a loan at a low interest rate, then immediately apply for KCC and make your farm stronger!