Sat Feb 01 17:52:11 UTC 2025: ## Kisan Credit Card Loan Limit Doubled in Union Budget 2025
**New Delhi, [Date of Publication]** – Finance Minister Nirmala Sitharaman announced a significant boost to India’s agricultural sector in the Union Budget 2025, raising the loan limit for Kisan Credit Cards (KCCs). The maximum loan amount available to farmers under the KCC scheme has been increased from ₹3 lakh to ₹5 lakh. This move is expected to benefit approximately 7.7 crore farmers nationwide.
The KCC scheme, introduced in 1998, provides farmers with timely credit for agricultural operations, including crop cultivation, post-harvest expenses, marketing, household consumption, and farm asset maintenance. The scheme offers a subsidized interest rate of 4% per annum, incorporating a 2% interest subvention and a 3% prompt repayment incentive.
The increased loan limit aims to enhance crop productivity and address unemployment in rural areas. Farmers can utilize the higher credit limit for a wider range of agricultural activities and investments.
The application process for KCC remains largely unchanged. Farmers can apply through their respective banks, providing necessary documents such as identity and address proof, land ownership details, cropping patterns, and security documents.
This budget announcement is hailed as a major step towards empowering farmers and strengthening the agricultural backbone of the Indian economy. The government expects the increased credit access to significantly contribute to improved agricultural output and rural prosperity.
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