Sat Feb 01 05:40:00 UTC 2025: ## Budget 2025 Boosts Farmer Income with Increased Kisan Credit Card Limits
**New Delhi, [Date]** – Finance Minister Nirmala Sitharaman announced a significant increase in the credit limit for Kisan Credit Cards (KCCs) in the Union Budget 2025. The limit has been raised from ₹3 lakh to ₹5 lakh, a move widely anticipated and long sought after by farmers. This increase is expected to significantly benefit small and medium-scale farmers, boosting rural demand and the overall rural economy.
The KCC scheme already provides farmers with timely and adequate credit for agricultural needs, offering a simplified application process and consolidated borrowing for various agricultural requirements. Existing benefits include a 2% interest subsidy from the government, resulting in an effective annual interest rate of 4%, and a 3% quick repayment incentive. The scheme also incorporates crop insurance, accident insurance, health insurance, and asset insurance.
In addition to the KCC enhancements, the budget included a special initiative for Bihar. The government announced the formation of a Makhana Board under the Farmer Producer Organisation (FPO) framework. This will provide training and support to Makhana (fox nut) cultivators in the state, further boosting their income and economic prospects.
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