Kisan Credit Card Scheme offers loans up to 5 lakhs until July 31

The Agriculture Minister told banks to give needy farmers KCC loans with low interest rates.

Farmers require money for many things related to farming, hence the Kisan Credit Card Scheme 2025 was created. When this happens, farmers borrow money from nearby moneylenders, who charge them a lot of interest. The Kisan Credit Card Yojana was created to help farmers avoid falling into the hands of moneylenders and get loans at reasonable rates. The best part of this plan is that farmers can simply acquire a loan of up to Rs 5 lakh.

It used to be Rs 3 lakh, but now it is Rs 5 lakh. The state government is running a big effort till July 31 to make sure that farmers in need get the benefit of KCC on time. The state government wants every poor farmer to be able to use the credit card program so that as many farmers as possible can get loans to meet their farming demands.

Every farmer who needs help should be able to get the benefits of KCC.

In this regard, the UP Agriculture Minister recently told banks to give farmers KCC loans on time. Surya Pratap Shahi, the Minister of Agriculture, told bank and insurance company executives to do this during a review meeting about the Kisan Credit Card. He was unhappy with how big banks and all other institutions that are involved with Kisan Credit Card, or KCC loan, worked. He told the banks to work as hard as they can till July 31 to make sure that the KCC benefits reach the farmers who need them.

Directions about what to do if officials don't give satisfactory answers

The Agriculture Minister of Uttar Pradesh invited all the bank representatives to give a full report on the KCC loans that their banks have given out so far during the meeting. He told the people in charge to take the right steps against the bank officials because they didn't provide him a satisfactory answer. The Agriculture Minister told them to start a special effort to get KCC loans before July 31.

KCC has to be widely publicized.

He said that in order to ensure that every needy farmer gets the benefit of KCC, there is a need for extensive publicity through media so that every farmer can get information about the Kisan Credit Card Scheme. The minister also said he was unhappy that insurance companies didn't create offices in every tehsil and didn't care about farmers. He directed that the insurance companies should open offices at every tehsil level and provide necessary assistance to the farmers.

What is the Kisan Credit Card Plan?

The Central Government introduced the Kisan Credit Card Scheme in 1998–99. Farmers can get low-interest loans for farming through this program. The bank gives the farmer a Kisan Credit Card, or KCC, as part of this plan. This lets farmers borrow money from the bank at a low interest rate. With this card, farmers can borrow up to one lakh rupees without having to put up any collateral. You can also get a loan of Rs 3 lakh with a 7% interest rate. The farmer gets a 3% reduction or rebate if he pays back the loan on time. Because of this, farmers can get this loan for only 4%. The farmer can get an agricultural loan of up to Rs 5 lakh under this plan.

Unique features of the Kisan Credit Card

The Kisan Card that comes with the plan is good for five years.
You have to renew this card every year.
After harvesting and selling the produce, it is easier to pay back the debt.
You have 12 months to pay back the loan. If the crop season doesn't go well, the loan can be extended for four years or more.
The lender's terms and the farmer's credit score will determine how much they can borrow.
This plan gives you a passbook so you can take money out of the bank.
A cheque book is given out with a credit limit of Rs 25,000.
The Kisan Credit Card loan has an interest rate of about 9%. The government gives the farmer a 2% discount on the loan if he or she takes it out through a cooperative society. The loan is then paid back at a rate of 7%.
The bank also gives farmers with good credit scores a bigger loan amount under the plan. The benefit of a subsidy is also accessible on interest rates at the same time.
This plan lets KCC holders get insurance coverage through the National Crop Insurance Scheme for some kinds of crop loans.
Card members can also get coverage if their crops are lost because of natural disasters or pests.
People under 70 who have a KCC card also get personal accident coverage.

How to get a Kisan Credit Card

Many nationalized, cooperative, or regional banks provide out Kisan Credit Cards. You can get KCC by going to any of these banks. The bank looks at the applicant's credit score before giving them KCC. In this case, the bank looks at the applicant's land holdings, crop patterns, income, and so on. If everything is in order, the farmer gets a KCC.