Budget 2025: Kisan Credit Card; What is new loan limit for farmers? Check eligibility, benefits, and scheme details

The Kisan Credit Card (KCC) Scheme was introduced in 1998 to provide adequate and timely credit to the farmers for their agricultural operations. It offers interest subvention of 2 per cent and a Prompt Repayment Incentive of 3 per cent to the farmers, thus making the credit available at a very subsidised rate of 4 per cent per annum. 

To meet the short term credit requirements for the cultivation of crops To cover Post-harvest expenses To produce a marketing loan

To meet the consumption requirements of farmer's household Working capital for maintenance of farm assets and activities allied to agriculture Investment credit requirement for agriculture and allied activities

Term loans for investment Long term loan limit Maximum permissible limit

A magnetic stripe card with PIN (Personal Identification Number) with an ISO IIN (International Standards Organization International Identification Number) to enable access to all banks ATMs and micro ATMs

In cases where the Banks would want to utilize the centralized biometric authentication infrastructure of the UIDAI (Aadhaar authentication), debit cards with magnetic stripe and PIN with ISO IIN with biometric authentication of UIDAI can be provided.

Debit Cards with magnetic stripes and only biometric authentication can also be provided depending on the customer base of the bank. Till such time, UIDAI becomes widespread, if the banks want to get started without inter-operability using their existing centralized biometric infrastructure, banks may do so

Banks may choose to issue EMV (Europay, MasterCard and VISA, a global standard for the interoperation of integrated circuit cards) and RUPAY compliant chip cards with magnetic stripes and pins with ISO IIN.

Further, biometric authentication and smart cards may follow the common open standards prescribed by IDRBT and IBA. This will enable them to transact seamlessly with input dealers and also enable them to have the sales proceeds credited to their accounts when they sell their output at mandies, procurement centres, etc.

Finance Minister Nirmala Sitharaman announced in Union Budget 2025, an increase in the subsidised Kisan Credit Card loan limit to Rs 5 lakh from the existing Rs 3 lakh, benefiting 7.7 Crore farmers. 

Visit the website of the bank you wish to apply for the Kisan credit card scheme.  From the list of options, choose the Kisan Credit Card.   On clicking the option of ‘Apply’, the website will redirect you to the application page.   Fill out the form with the required details and click on ‘Submit’.  In doing so, an application reference number will be sent. If you are eligible, the bank will get back to you for the further process within 3-4 working days.

Application Form. Two Passport Size Photographs. ID proof such as Driving License / Aadhar Card / Voter Identity Card / Passport.  Address Proof such as Driving License, Aadhar Card.

Proof of landholding duly certified by the revenue authorities. Cropping pattern (Crops grown) with acreage. Security documents for loan limit. Any other document as per sanction.