Every year, the government of India introduces some economic changes and updates in the existing framework of various schemes and policies. These changes are announced through the Union Budget which is a financial statement of the country. The Union Budget is like a roadmap that determines the nation’s financial activity based on estimated revenue and expenditure values.
Recently, the Finance Minister of India, Smt Nirmala Sitharaman announced this year’s budget. i.e. Union Budget 2025. The budget comprises various additions, changes, and updates, and one of the updates is regarding a scheme for farmers called the Kisan Credit Card (KCC) Scheme.
The profession of farmers and the sector of agriculture are very different from other professions and sectors as they determine the health of all the other citizens of the country.
Read the news article to know what exactly is the change and how will it affect the lives of farmers.
Changes In The Kisan Credit Card Scheme
Recently, the Finance Minister of India, Smt Nirmala Sitharaman announced the particulars of the most awaited Union Budget of 2025 and it comprises provisions for the Kisan Credit Card (KCC) Scheme as well.
Increased Credit Limit
The credit limit of Kisan Credit Card (KCC) has been increased from Rs. 3 lakh to Rs. 5 lakh. This increase in limit would help around 7.7 crore farmers including fishermen and dairy farmers in applying for short-term loans.
Urea Plans
The government has also reopened 3 dormant urea plans in the eastern region to boost the supply of urea.
What Is The Kisan Credit Card Scheme?
The Kisan Credit Card is a government-led initiative launched to provide credit to farmers on easy and convenient terms. It was introduced in 1998 and enables farmers to access short-term credit for various purposes like cultivation, purchasing seeds, and other agriculture-related activities.
Apart from providing short-term loans, the Kisan Credit Card also covers term loans for investment in agricultural assets like tractors, pumps, and other such equipment and machines. The farmers with a Kisan Credit Card can now access loans up to Rs. 3 lakh to Rs. 5 lakh as per the Budget 2025, based on the size of the land and the pattern of crop. The rate of interest applied on loans is 4%. The scheme also comprises insurance coverage, protection of farmers from natural calamities, and overall promoting the well-being of the farmers in both, their personal and professional lives.
Firstly, interested farmers are required to fulfil all the conditions in the eligibility criteria and then apply for the scheme to reap its benefits.
Conclusion
The change concerning the increase in the Kisan Credit Card limit in the Union Budget of 2025 would prove itself to be one of the best things that can happen to the farmers of India. The additional funds won’t only help the farmers in investing in advanced equipment or other materials like quality seed but will also increase their quality of life.
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