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Budget 2025: What is Kisan Credit Card whose limit has been increased to Rs 5 lakh by FM Nirmala Sitharaman? Know its benefits and how to apply
- Written by Priya Vishwakarma
Published: 5:26 PM, Feb 2, 2025
|Updated: 5:32 PM, Feb 2, 2025
KCC Limit Increased in Budget 2025-26: Finance Minister Nirmala Sitharaman made many significant announcements in her eighth consecutive budget presented in Parliament on Saturday, February 1. These include zero tax on annual income up to Rs 12 lakh, a Rs 2 crore term loan for women entrepreneurs, a Fund of Funds scheme for startups, an increase in defense expenditure, and more.
In addition to these announcements, Sitharaman also made key provisions specifically for farmers. One of the major announcements was an increase in the Kisan Credit Card (KCC) limit from Rs 3 lakh to Rs 5 lakh. Starting April 1, 2025, farmers will be able to apply for loans up to Rs 5 lakh. This change is expected to benefit crores of farmers. Here's what the Kisan Credit Card is and how to apply for it.
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What are the benefits of Kisan Credit Card?
Kisan Credit Card provides farmers with loans tailored to their needs for agricultural work. These loans come with low-interest rates, helping farmers meet their financial requirements.
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What are the benefits of Kisan Credit Card?
Additionally, farmers who repay their loans on time can receive a 3 per cent interest discount, providing significant financial relief.
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Debit Card and Crop Insurance
Farmers with KCC can access a RuPay debit card, allowing them to withdraw money from ATMs and make digital payments. KCC holders’ crops are also eligible for coverage under the Pradhan Mantri Fasal Bima Yojana (PMFBY), offering further financial protection.
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Where can KCC funds be used?
The funds from the Kisan Credit Card are intended for agricultural use. Farmers can use the KCC loan to purchase seeds, fertilizers, pesticides, and DAP (Di-Ammonium Phosphate) for farming.
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How to apply for Kisan Credit Card
Applying for a Kisan Credit Card is simple, and you can apply either offline or online. Applications can be submitted at any bank, small finance bank, or cooperative.
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Documents needed to apply
To apply for a Kisan Credit Card, you will need the following documents:
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Identity Proof:
- Identity Proof: Aadhar Card, PAN Card, Voter ID, Driving License, etc.
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Address Proof
- Address Proof: Aadhar Card, Ration Card, Electricity Bill, Water Bill, etc.
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Proof of Land Ownership/Tenancy
- Proof of Land Ownership/Tenancy: A document confirming land ownership (such as Khatauni, Jamabandi, or Patta). If you are a tenant, you will need a valid tenancy document.
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