New Delhi : Finance Minister Nirmala Sitharaman is going to present the general budget on 1 February. It is being told that this budget can prove to be very special for the farmers. It is expected that the government is preparing to increase the limit of Kisan Credit Card from Rs 3 lakh to Rs 5 lakh in the budget to be presented on February 1.
A source related to this matter has said in a report that the Kisan Credit Card i.e. KCC limit was last changed a long time ago and the government was continuously receiving demands to increase it. The move is aimed at supporting farmers and boosting rural demand. Therefore, the government can increase the KCC limit to Rs 5 lakh.
When will KCC scheme start?
Kisan Credit Card Scheme was started 26 years ago in the year 1998. Under this scheme, farmers who do farming and related work are provided short term loans at 9 percent interest. The most important thing about this scheme is that the government also gives a rebate of 2 percent on the interest charged on the loan. Farmers who repay the entire loan on time can be given an additional rebate of 3 percent as incentive. Which simply means that this loan is given to farmers at only 4 percent annual interest. By June 30, 2023, the number of people taking such loans was more than 7.4 crore. On which outstanding of more than Rs 8.9 lakh crore was visible.
Limit not increased
According to media reports, according to Vishal Sharma, co-founder and CEO of fintech firm Advarisk, the cost of farming has increased significantly. On the contrary, there has been no increase in the limit of loans given to farmers for a long time. If the KCC limit is increased in the budget, then the production of agriculture sector may also increase. Besides, an increase in agricultural income may also be seen. Due to which, there is a change in the lifestyle of the farmers and they will also be able to repay the loan.
They also need loan
NABARD Chairman Shaji KV has said in a media report that the aim of Kisan Credit Card is to provide relief to small farmers. He has said that agriculture does not only mean growing crops but also doing related work. These farmers are also in great need of subsidized loans. So that this can also increase their earnings. He said that NABARD is also running a campaign with the Financial Services Department to increase the earnings of farmers. So that loans can also be given to people doing animal husbandry and fisheries.
How many farmers were issued credit cards?
Shaji KV has informed that banks and rural financial institutions have also been included in this campaign. Besides, state governments are also being encouraged to register fish farmers. Even after farmers are registered, banks can be asked to give loans. According to NABARD data, 167.53 lakh Kisan Credit Cards were issued by co-operative banks and regional rural banks till October 2024. Whose total credit limit was Rs 1.73 lakh crore. 11.24 lakh cards were issued to dairy farmers, the limit of which was Rs 10,453.71 crore. Out of which 65,000 Kisan Credit Cards were issued to fishermen, the limit of which was said to be Rs 341.70 crore.
Click here to read other business news
Comments are closed.