Big news for farmers! The government is considering major changes to boost financial support for the agricultural sector. Here’s what you need to know:
Higher Limits for Kisan Credit Card (KCC) Loans:
- Planned Increase: The government is working to raise the credit limit on Kisan Credit Card (KCC) loans, which has remained unchanged for the past 3-4 years.
- Current Limit: Currently, the maximum credit limit under the KCC scheme is ₹3 lakh.
- Outstanding Credit: As of now, the outstanding credit in KCC accounts stands at a whopping ₹9.81 lakh crore!
- Interest Subsidy: Farmers can benefit from a subsidized interest rate of 4% per annum, thanks to a 2% interest subvention and an additional 3% Prompt Repayment Incentive.
RBI’s Modified Interest Subvention Scheme:
- Interest Rate: Eligible farmers can access loans up to ₹3 lakh at a subsidized interest rate of 7%.
- Prompt Repayment Bonus: Farmers who repay their loans on time will receive an additional interest subvention of 3% per annum.
- Aadhaar Linkage: Mandatory Aadhaar linkage will continue to be required for accessing these loans.
New Scheme for Tenant Farmers:
- PM-SVANidhi-Type Scheme: Inspired by the success of the PM Street Vendor’s Atmanirbhar Nidhi (PM-SVANidhi) for street vendors, the government is considering a similar scheme tailored for tenant farmers.
- Improved Farm Credit Mechanism: This initiative aims to provide better financial support to tenant farmers, ensuring they have access to necessary funds.