This document summarizes the Indian government's response to Lok Sabha Unstarred Question No. 1365 regarding the Kisan Credit Card (KCC) scheme, answered on July 28, 2025.
The government announced in the Union Budget 2025-26 an increase in the loan limit under the Modified Interest Subvention Scheme (MISS) from Rs. 3 lakh to Rs. 5 lakh for loans taken through KCC. The limit for collateral-free credit under KCC was previously increased from Rs. 1.6 lakh to Rs. 2 lakh per borrower, effective January 1, 2025. There are no plans to further increase the collateral-free credit limit.
These initiatives aim to improve access to formal credit for farmers and reduce reliance on non-institutional sources.
Data from the State Level Bankers' Committee (SLBC), Bihar, indicates the following KCC disbursements in Darbhanga district over the past five years:
* **2020-21:** 30,778 (Crop KCC) + 471 (Animal Husbandry KCC) + 21 (Fisheries KCC) = 31,270
* **2021-22:** 54,074 (Crop KCC) + 654 (Animal Husbandry KCC) + 47 (Fisheries KCC) = 54,775
* **2022-23:** 51,053 (Crop KCC) + 994 (Animal Husbandry KCC) + 35 (Fisheries KCC) = 52,082
* **2023-24:** 45,452 (Crop KCC) + 1,023 (Animal Husbandry KCC) + 24 (Fisheries KCC) = 46,499
* **2024-25:** 63,194 (Crop KCC) + 6,432 (Animal Husbandry KCC) + 194 (Fisheries KCC) = 69,820
The government has taken several steps to improve the accessibility of the KCC scheme, including:
* Extending the KCC scheme in 2019 to cover the working capital requirements of animal husbandry, dairying, and fisheries.
* Conducting awareness programs and Information, Education, and Communication (IEC) campaigns through Union/State Governments, RBI, NABARD, and Banks.
* Launching a KCC Saturation Drive under Atma Nirbhar Bharat Abhiyan to provide KCCs to all eligible farmers, including weekly district-level camps for those engaged in Animal Husbandry, Dairy, and Fisheries (AHDF).
Key Entities Referenced
Kisan Credit Card scheme: A government scheme to provide farmers with credit for agricultural needs.
Shri Gopal Jee Thakur: Member of Parliament who raised the question regarding the Kisan Credit Card scheme.
Pankaj Chaudhary: Minister of State in the Ministry of Finance who provided the answer to the question.
Union Budget 2025-26: The annual financial statement in which the increase of loan limit under Modified Interest Subvention Scheme was announced.
Modified Interest Subvention Scheme: A scheme to provide interest subvention on loans taken through Kisan Credit Card (KCC).
Darbhanga district of Bihar: A district in Bihar, India, for which data on beneficiaries of the KCC scheme was provided.
RBI: Reserve Bank of India, involved in awareness programs for the KCC scheme.
NABARD: National Bank for Agriculture and Rural Development, involved in awareness programs for the KCC scheme.
Government of India
Ministry of Finance
Department of Financial Services
LOK SABHA
Unstarred Question No. 1365
ANSWERED ON MONDAY, 28 JULY 2025/ SRAVANA 6, 1947 (Saka)
Increase in Limit of Kisan Credit Card Scheme
†1365. Shri Gopal Jee Thakur:
Will the Minister of FINANCE be pleased to state:
a) whether the Government proposes to increase the limit of the Kisan Credit Card scheme
for farmers to Rs.5 lakh without guarantee;
b) whether small farmers will not face difficulties in agricultural works due to this initiative;
c) the number of farmers of Darbhanga district of Bihar benefitted from this scheme during
the last five years, the scheme-wise;
d) whether the Government proposes to make this scheme more accessible to farmers; and
e) if so, the details thereof?
Answer
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) In Union Budget 2025–26, the Government of India has announced to increase the loan
limit under the Modified Interest Subvention Scheme (MISS) from existing Rs. 3 lakh to Rs 5
lakh for loans taken through the Kisan Credit Card (KCC). The limit for collateral free credit
under KCC has already been increased from the Rs. 1.6 lakh to Rs. 2 lakh per borrower,
effective from 01 January, 2025. There is no proposal under consideration for increasing this
limit further.
(b) The aforesaid initiatives of Government are aimed to promote greater access to
formal/institutional credit in the agricultural sector, thereby reducing reliance on non-
institutional sources.
(c) As reported by SLBC, Bihar, the details of number of farmers of Darbhanga district of
Bihar benefitted from this scheme during the last five years is given at Annexure.
(d) and (e) Government has taken various steps to make KCC scheme more accessible to farmers
which inter-alia includes:
i. In 2019, KCC scheme was extended to cover working capital requirement of animal
husbandry, dairying and fisheries.
ii. In order to bring awareness about the benefits of the KCC scheme among farmers,
Union/State Governments, RBI, NABARD and Banks conduct various awareness
programmes and IEC (Information, Education and Communication) campaigns.
iii. Government of India launched KCC Saturation Drive under Atma Nirbhar Bharat
Abhiyan to provide KCC to all eligible farmers. Further, to expand the benefits of the
Kisan Credit Card (KCC) to all eligible farmers engaged in Animal Husbandry, Dairy,
and Fisheries (AHDF) nationwide district level weekly camps were also organized.
*****Annexure
Number of KCC disbursed during the last five years
Financial KCC-Animal
KCC- Crop KCC-Fisheries Total KCC
Year Husba ndry
2020-21 30,778 471 21 31,270
2021-22 54,074 654 47 54,775
2022-23 51,053 994 35 52,082
2023-24 45,452 1,023 24 46,499
2024-25 63,194 6,432 194 69,820