In the upcoming budget, the limit of the Kisan Credit Card can be increased from Rs 3 lakh to Rs 5 lakh. Before this, the last change in the KCC limit was in the year 2006-07. In such a situation, it is expected that the government can increase the limit of KCC once again.

There has been a demand for increasing the limit of Kisan Credit Cards for a long time. Also, if the limit of KCC is increased, then it will be very easy for the farmers to do farming and they will not have to depend on moneylenders for seeds, fertilizers, and other needs.

Kisan Credit Card Scheme was started about 26 years ago in the year 1998. Under this scheme, farmers who do farming and related work are provided short-term loan at an interest rate of 9 percent.

The special thing about this scheme is that the government also gives a discount of 2 percent on the interest charged on the loan. At the same time, farmers who repay the entire loan on time are given an additional 3 percent discount as an incentive.

This means that this loan is given to farmers at only 4 percent annual interest. By June 30, 2023, the number of people taking such loans was more than 7.4 crores. On which more than Rs 8.9 lakh crore was seen as outstanding.

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