Farmers are given loans up to Rs 3 lakh at a 4 percent interest rate on Kisan Credit Card

Farmers are given loans up to Rs 3 lakh at a 4 percent interest rate on Kisan Credit Card

loan on kisan credit card

The Kisan Credit Card (KCC) scheme was started in the year 1998 with the objective of providing institutional agricultural credit to the farmers at low-interest rates. Since then, many changes have been made in the scheme by the government so that farmers can easily get loans on Kisan Credit Card. In the year 2019, Kisan Credit Card has also been linked to animal husbandry and fisheries. On December 14, 2021, MP Shri Sunil Kumar Pintu raised many questions in the Lok Sabha regarding the Kisan Credit Card, whose answers were given in detail by the Minister of Agriculture and Farmers Welfare, Shri Narendra Singh Tomar.

In his response, the Agriculture Minister gave information about the loans given by the government to the farmers on Kisan Credit Card and the facilities provided on it, as well as the scheme started by the government to connect more and more farmers to the Kisan Credit Card scheme. Also informed about the initiatives. He also told me how many Kisan Credit Cards have been issued so far state-wise.

Loan of Rs 1.60 lakh is given on KCC without guarantee

In one of his questions, MP Shri Sunil Kumar Pintu asked whether the government has any proposal to simplify the process of Kisan Credit Card KCC and reduce the interest rate on loans given to farmers on it? Responding to which Agriculture Minister Shri Narendra Singh Tomar said that the following initiatives have been taken to cover the maximum number of farmers under KCC to provide easy access to concessional institutional credit and to simplify the process of obtaining KCC: –

  • Loans up to Rs.3 lakh have been made free from all service charges like processing fee, inspection fee, account fee.
  • Collateral free loan limit for short term agricultural loans has been increased from Rs.1.00 lakh to Rs.1.60 lakh.
  • KCC has been expanded for livestock farmers and farmers engaged in fisheries.
  • A simple one page special application form has also been prepared and shared with the banks.

Farmers get agricultural loan at an interest rate of 4 percent

The Government of India is also implementing the Interest Subvention Scheme with a view to providing short-term agricultural loans to the farmers at concessional interest rates. Under the scheme, short-term crop loans up to Rs.3 lakh are available through KCC at a benchmark rate of 9% for farmers engaged in agriculture and other allied activities. The government of India provides a 2% interest subvention on the benchmark rate. Farmers are also given an additional 3% rebate in lieu of prompt and timely repayment of loans, thus reducing the effective interest rate to 4% per annum.

State wise, how many farmers have been given Kisan Credit Card now

In one of his questions, MP Shri Sunil Kumar Pintu asked that what is the state-wise number of farmers in the country who have been issued Kisan Credit Cards, in response to which the Agriculture Minister said that from February 2020 to November 12, 2021, there are different types of farmers across the country. A total of 2 crores 60 lakh 59 thousand 687 farmers have been given Kisan Credit Cards in banks. This Kisan Credit Card is inclusive of all the states and union territories of the country. In Uttar Pradesh, 33 lakh 20 thousand 356 farmers have been given Kisan Credit Card, while on the other hand, 277 Kisan Credit Cards have been given to the lowest farmers of Dadar Nagar Haveli. 

State wise KCC issued from February 2020 to November 12, 2021

S.No.state nameNo. of Applications Approved for KCC (KCC)
1.Andaman and Nicobar Islands7,190
2.Andhra Pradesh1,958,165
3.Arunachal Pradesh3,122
4.Assam298,830
5.A state in Eastern India463,637
6.Chandigarh6,538
7.Chhattisgarh283,953
8.Dadra and Nagar Haveli277
9.Daman and Diu863
10.Delhi3,568
11.Goa9,960
12.Gujarat1,624,233
13.Haryana414,142
14.Himachal Pradesh169,685
15.Jammu and Kashmir740,766
16.Jharkhand261,889
17.Karnataka1,680,099
18.Kerala1,100.288
19.Ladakh8,166
20.Lakshadweep342
21.Madhya Pradesh1,711.609
22.Maharashtra3,949,144
23.Manipur5,196
24.Meghalaya20,923
25.Mizoram19,874
26.Nagaland17,053
27.Odisha649,438
28.Union Territory of Puducherry8,459
29.Punjab513,412
30.Rajasthan2,338,383
31.Sikkim4,693
32.Tamil Nadu1,027,859
33.Telangana1,187,559
34.Tripura155,261
35.Uttar Pradesh3,320,356
36.Uttarakhand538,549
37.West Bengal1,556,205
 Total26,059,687

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