New Delhi: The amount under the Surgery Fund Credit Card (KCC) account has more than doubled from Rs 4.26 crore in March 2014 to Rs 1.05 crore in December 2024. This suggests that the quantum prices provided by farmers for agriculture and agricultural activities can increase significantly. This reflects a deepening agricultural credit and reduces reliance on non-institutional credit.
Kisan Credit Card (KCC) is a banking product that provides farmers with timely and affordable credit to purchase agricultural inputs such as seeds, fertilizers and pesticides and meet cash requirements related to crop production and related activities. In 2019, the KCC program was expanded to cover working capital requirements for Allied activities, i.e. Livestock, dairy and fisheries.
The Indian government provides banks with a 1.5% interest sub-credit to provide short-term agricultural loans up to Rs 3 lakh rupees through KCC with a preferential interest rate of 7% per year. Additional timely repayment incentives provide farmers with 3% of their timely repayment of loans, which actually reduces interest rates to 4% of their farmers. Loans up to Rs 2 lakh are extended on a condition-free basis to ensure the hassle of small and marginal farmers to obtain credit.
Finance Minister in the budget speech 2025-26 announced that the loan limit will be increased from Rs 3 lakh to Rs 5 lakh under the revised Interest Asia Programme plan, which will further benefit farmers.
As of 31.22.2024, under surgical KCC, a total of 100 crore rupees were provided to farmers of 777.72 crore.
