Kisan Credit Card interest subvention scheme limit to be raised to Rs 5 lakh: FM Sitharaman

NEW DELHI: To further strengthen agricultural financing, the government has announced enhancing the loan limit under the modified interest subvention (MIS) scheme from Rs 3 lakh to Rs 5 lakh for loans taken through Kisan Credit Card (KCC), Union Finance Minister Nirmala Sitharaman said in her Union Budget 2025-26 speech in Parliament on Saturday.

Sitharaman, highlighted that the KCC scheme has facilitated short-term loans for 7.7 crore farmers, including fishermen and dairy farmers. This increase aims to provide better financial support and accessibility to farmers, ensuring timely credit availability.

She said, “Kisan Credit cards facilitate short-term loans for 7.7 crore farmers, fishermen and dairy farmers. The loan limit under the modified Interest subvention schemes will be enhanced from Rs 3 lakh to Rs 5 lakh for loans taken through KCC”.

Kisan Credit Card

-Facilitate short-term loans for 7.7 Crore farmers, fishermen & dairy farmers

-The loan limit under the Modified Interest Subvention Scheme will be enhanced from ₹3 Lakh to ₹5 Lakh for loans taken through KCC#UnionBudget2025 #BudgetForViksitBharat pic.twitter.com/Em20tekmaf

— Ravi Shankar Prasad (@rsprasad) February 1, 2025

The budget includes enhancements in the Kisan Credit Card (KCC) scheme, initiatives to boost urea production, and a five-year mission for cotton productivity. Further in a move towards self-sufficiency in urea production, the Finance Minister announced the reopening of three government-run urea plants in the eastern region.

Additionally, to augment urea supply, a new plant with an annual capacity of 12.7 lakh metric tonnes will be set up at Namrup in Assam. This initiative aligns with the government’s vision of reducing dependency on imports and strengthening domestic fertilizer production.

For benefit of lakhs of cotton-growing farmers, Sitharaman unveiled a five-year Mission for Cotton Productivity. She stated, “For the benefit of lakhs of cotton-growing farmers, I am pleased to announce a Mission For Cotton Productivity. This 5-year mission will facilitate significant improvement in productivity and sustainability of cotton farming and promote extra-long staple cotton varieties. The best science and technology support will be provided to the farmers.”

She added, “Aligned with our integrated 5F vision for the textile sector, this will help increase the incomes of the farmers and ensure a steady supply of quality cotton for rejuvenating India’s traditional textile sector.”

Aligned with the government’s integrated 5F vision for the textile sector — Farm to Fibre to Factory to Fashion to Foreign–this initiative will rejuvenate India’s traditional textile industry. The mission is expected to enhance farmer earnings and ensure a consistent supply of superior quality cotton for the textile sector.

Recognizing the immense potential of marine culture, Sitharaman announced that the government will introduce an enabling framework for the sustainable harnessing of fisheries from India’s Exclusive Economic Zone (EEZ) and high seas.

This initiative will have a special focus on the Andaman and Nicobar Islands and Lakshadweep Islands, tapping into unexplored marine resources to boost economic growth and create employment opportunities in the coastal regions.
India ranks as the second-largest producer of fish globally, with aquaculture and seafood exports valued at Rs 60,000 crore. (ANI)