KCC Loan Limit Raised to ₹5 Lakh: Who Benefits
Why in the news
The Budget lifted the Kisan Credit Card (KCC) ceiling, but only for commercial farmers with clean repayment history.
Key facts
- Beneficiaries: 8 million of about 77.7 million KCC accounts, all with loans of ₹3 lakh or more; weak repayers and non-commodity farmers are excluded.
- No extra burden on banks, as only eligible accounts qualify.
- March 2024: ₹9.81 trillion outstanding on active KCC accounts.
- FY24: operative KCCs grew 5.4%, outstanding loans 10.9%; the South led in outstanding loan growth.
Interest subvention (MISS)
| Feature | Detail |
|---|---|
| Concessional rate | 7% on loans up to ₹3 lakh |
| Prompt Repayment Incentive | 3%, so timely payers pay 4% |
| Post-harvest loans | Covered if backed by Negotiable Warehouse Receipts |
| Fisheries and animal husbandry | Collateral-free limit of ₹1.6 lakh since 2018-19 |
| Digital claims | Kisan Rin Portal |
Concern
- Agriculture NPAs rose from 25.4% (March 2023) to 28.4% (March 2024).
Exam angle
- Related terms: MISS, PRI, NWR, Kisan Rin Portal.