Kisan credit card: Giving great relief to the farmers, the Central Government has approved to increase the revised Interest Rebate Scheme (MISS) on May 28 to the financial year 2025-26. The scheme provides short -term loans to farmers at cheaper rates through Kisan Credit Card (KCC). Crores of farmers across the country are expected to directly benefit from this step.
After the meeting of the Cabinet Committee on Economic Affairs chaired by the Prime Minister, Information and Broadcasting Minister Ashwini Vaishnav informed about this decision. The government has allocated a budget of ₹ 15640 crore to continue this scheme.
How does the interest discount scheme work?
The MISS scheme helps farmers to get loans at a concessional interest rate of 7%. Out of this 7% interest rate, the government bears 1.5% interest, which is given as an interest rebate to loans institutions. Farmers who pay their loans on time get an additional ‘early repayment incentive’ of 3%. This reduces their effective interest rate to only 4%, which is very beneficial for farmers.
No change in plan
The government has not made any changes in the structure of this scheme. Under this scheme, loans of up to ₹ 3 lakh for farming and loans of up to ₹ 2 lakh can be taken for related activities like animal husbandry and fisheries.
What is Kisan Credit Card (KCC)?
KCC was launched in 1998. It was started with the aim of providing timely loan to farmers for farming and other needs. It helps farmers to buy seeds, fertilizers and machinery so that they do not get caught in the debt trap. This card also works as a debit card, from which cash clearance can also be done. According to government data, India has more than 7.75 crore active KCC accounts. Recent years have seen a rapid increase in the number of loans through KCC. Its figure in 2014 was ₹ 4.26 lakh crore, which has increased to ₹ 10.05 lakh crore by December 2024.
Miss is important for rural economy
On the expansion of the MISS scheme, officials stated that, the expansion of MISS is important to ensure continuous flow of low -cost loans through institutional channels. It supports small and marginal farmers and strengthens the rural debt system. The official statement said that ‘a stable interest discount rate is necessary for farmers’. He said that there has been a tremendous increase in the flow of agricultural loans. The loan figure has increased from ₹ 7.3 lakh crore in the year 2013-14 to ₹ 25.49 lakh crore in 2023-24. This scheme will play an important role in empowering farmers financially.