Operative Kisan Credit Card amount crosses ₹10 lakh crore, covering 7.72 crore farmers
The amount under operative Kisan Credit Card (KCC) accounts reached ₹10.05 lakh crore as of 31 December 2024, benefiting 7.72 crore farmers, the Finance Ministry said on 25 February 2025.
Summary
The Ministry of Finance said on 25 February 2025 that the amount under operative Kisan Credit Card accounts more than doubled from ₹4.26 lakh crore in March 2014 to ₹10.05 lakh crore as of 31 December 2024, benefiting 7.72 crore farmers. KCC provides timely and affordable credit for crop inputs and, since 2019, for working capital needs of animal husbandry, dairy and fisheries. Under the Modified Interest Subvention Scheme (MISS), the government gives banks 1.5% interest subvention on short-term KCC loans up to ₹3 lakh at 7% a year; a 3% Prompt Repayment Incentive brings the effective rate to 4%. Loans up to ₹2 lakh are collateral-free. The Union Budget 2025-26 raised the MISS loan limit from ₹3 lakh to ₹5 lakh.
Key facts
- Operative KCC amount
- ₹10.05 lakh crore (31 December 2024)
- Farmers
- 7.72 crore
- March 2014
- ₹4.26 lakh crore
- MISS
- 1.5% subvention to banks; 7% rate; 3% PRI - effective 4%
- Collateral-free
- Up to ₹2 lakh
- Budget 2025-26
- MISS limit raised from ₹3 lakh to ₹5 lakh
- Extension in 2019
- Animal husbandry, dairy, fisheries
Practice MCQs 3 questions
As of 31 December 2024, what was the total amount under operative Kisan Credit Card accounts, as per the Finance Ministry?
Show answer
Correct answer: A — 10.05 lakh crore rupees
The amount under operative KCC accounts stood at 10.05 lakh crore rupees as of 31 December 2024, benefiting 7.72 crore farmers.
The Union Budget 2025-26 raised the loan limit under the Modified Interest Subvention Scheme for KCC loans from 3 lakh rupees to:
Show answer
Correct answer: B — 5 lakh rupees
The Finance Minister announced in the Budget Speech 2025-26 that the MISS loan limit would rise from 3 lakh to 5 lakh rupees.
Consider the following statements about short-term KCC loans under the Modified Interest Subvention Scheme: 1. Banks get 1.5% interest subvention and farmers who repay promptly get a 3% incentive, bringing the effective rate to 4% a year. 2. KCC loans up to 2 lakh rupees are extended without collateral. Which of the statements given above is/are correct?
Show answer
Correct answer: C — Both 1 and 2
Under MISS, banks get 1.5% subvention on KCC loans at 7%, and a 3% Prompt Repayment Incentive cuts the farmer's effective rate to 4%; loans up to 2 lakh rupees are collateral-free. Both statements are correct.