Govt raises kisan credit loan to ₹5 Lakh

Gadwal : In a significant relief for farmers, the government has increased the interest subsidy loan limit from Rs 3 lakh to Rs 5 lakh, ensuring greater access to affordable credit. The initiative was discussed at a meeting held at Rythu Vedika, Dharur on Saturday, where local officials highlighted the benefits of the revised scheme for small and marginal farmers.

Addressing the gathering, LDM Ayyappa Reddy highlighted that the Modified Interest Subvention Scheme (MISS) will allow farmers to secure loans at an effective interest rate of 4%, reducing their financial burden and encouraging higher investment in agriculture.

District Agriculture Officer Sakriya Naik added that the increased loan limit will support crop production, horticulture, and allied sectors such as animal husbandry and fisheries.

The revision in farm credit comes as part of the Union Budget 2025-26, which places agriculture among its top ten focus areas. To discuss budget implementation, a post-budget webinar on ‘Agriculture & Rural Well-being’ was held on Saturday in Delhi, inaugurated by Prime Minister Narendra Modi and attended by senior officials from the Department of Agriculture & Farmers Welfare (DoA&FW), RBI, NABARD, commercial banks, cooperative banks, and Krishi Vigyan Kendras (KVKs).

According to the Economic Survey 2024, as of March 31, 2024, there were 7.75 crore active Kisan Credit Card (KCC) accounts, playing a crucial role in meeting farmers’ short-term credit needs. In addition to raising the MISS loan limit, the Reserve Bank of India (RBI) has also increased the collateral-free KCC loan limit from Rs 1.6 lakh to Rs 2 lakh.

Officials at the Dharur meeting assured farmers that steps are being taken for smooth loan disbursal through banks and cooperative institutions, ensuring timely access to funds.

Key officials present at the event included LDM Ayyappa Reddy, District Agriculture Officer Sakriya Naik, Dharur Mandal Agriculture Officer, and several local farmers.