Union Budget 2025: Kisan Credit Card Loan Limit Raised to 5 lacs for Farmers

In a significant update from the Union Budget 2025, Finance Minister Nirmala Sitharaman announced that the loan limit for Kisan Credit Cards (KCC) will be increased from ₹3 lacs to ₹5 lacs.

This decision aims to provide enhanced financial support to approximately 7.7 crore farmers, fishermen, and dairy farmers across India.The KCC scheme is designed to facilitate short-term loans for agricultural production and related activities.

With this increase in the loan limit, farmers will have better access to credit, enabling them to invest in essential resources such as seeds, fertilizers, and equipment.

This move is expected to boost agricultural productivity and improve the livelihoods of those in the farming community.Additionally, the modified interest subvention scheme will help reduce borrowing costs for farmers, making it easier for them to manage their finances.

By supporting agricultural activities through increased credit availability, the government aims to strengthen rural economies and enhance food security in the country.Overall, this announcement reflects the government's commitment to empowering farmers and promoting sustainable agricultural practices.

As more farmers access higher loan amounts through KCCs, it is anticipated that this will lead to greater investment in agriculture and ultimately contribute to India's economic growth.