Budget 2025: Finance Minister Nirmala Sitharaman is presenting her eighth budget in Parliament, in which she presented the vision of developed India. Under this, giving an important gift to the farmers, announced to increase the limit of Kisan Credit Card to Rs 5 lakh. This step has been taken to strengthen the agriculture sector and provide financial support to the farmers.
Let us tell you that till now farmers used to get only a limit of Rs 3 lakh on Kisan Credit Card for farming. Apart from this, the Finance Minister of the country Nirmala Sitharaman has made many important announcements to speed up the sluggish economic growth of the country.
When will the KCC limit increase-
Finance Minister Nirmala Sitharaman has made an important announcement for the farmers. Now the loan limit to farmers through Kisan Credit Card (KCC) has been increased from Rs 3 lakh to Rs 5 lakh. This decision has been taken in Budget 2025. The Finance Minister said that farmers will soon get the benefit of this new increased loan limit.
Where can you spend KCC loan money?
Loans are given to farmers at very cheap interest rates on Kisan Credit Card. This loan is given to farmers for farming. In such a situation, farmers can use the limit of KCC to buy seeds, fertilizers, pesticides and DAP for farming. Let us tell you that there are a large number of small farmers in the country, due to which they do not have enough money to do farming. Therefore, the government started the KCC scheme to help the farmers.
When did the Kisan Credit Card Scheme start-
The Kisan Credit Card Scheme was started in India in 1998. The objective of this scheme is to provide short term loans to farmers at 9 percent interest for farming and related activities. This scheme provides financial assistance to farmers, so that they can easily get loans for their crops and other requirements. Apart from this, the government also gives a two percent interest discount on the loan, so that the farmers do not have to face financial crisis.
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 the farmers at only four percent annual interest. As of 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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