Gawal: In a significant move to provide affordable and easily accessible credit to farmers, the government has revised the interest subsidy scheme, increasing the loan limit from ₹3 lakh to ₹5 lakh. The initiative was discussed at a meeting held at the Rythu Vedika in Dharur Mandal.

The Union Budget 2025-26 has placed a strong emphasis on the welfare of farmers, reaffirming the government's commitment to boosting agricultural growth and productivity. Recognized as one of the ten key focus areas for development, agriculture continues to be a major driving force behind India’s economic progress.

As part of the budget implementation, a post-budget webinar on "Agriculture & Rural Well-being" was held on March 1, 2025. The webinar was inaugurated by Hon’ble Prime Minister and chaired by various secretaries from the Department of Agriculture & Farmers Welfare (DoA&FW). Representatives from RBI, NABARD, Scheduled Commercial Banks (SCBs), Regional Rural Banks (RRBs), State Cooperative Institutions, District Cooperative Banks (StCBs & DCCBs), State-Level Bankers Committees (SLBCs), Krishi Vigyan Kendras (KVKs), and farmers from across the country participated in the discussion.

According to the Economic Survey 2024, as of March 31, 2024, there were 7.75 crore operational Kisan Credit Card (KCC) accounts. The KCC scheme has played a crucial role in enhancing agricultural productivity and increasing farmers’ income by fulfilling short-term credit needs. Under the KCC-Modified Interest Subvention Scheme (KCC-MISS), farmers are now able to secure loans at an effective interest rate of 4%.

To further improve credit accessibility, the Reserve Bank of India (RBI) has increased the collateral-free KCC loan limit from ₹1.6 lakh to ₹2 lakh. Taking a major step forward, the Union Budget 2025-26 has raised the loan limit under the Modified Interest Subvention Scheme (MISS) from ₹3 lakh to ₹5 lakh. This initiative is expected to reduce the financial burden on small and marginal farmers while promoting greater investment in agriculture. The increased loan limit will significantly help in crop production, horticulture, animal husbandry, and fisheries by meeting the growing working capital requirements of farmers.

Over the past decade, the government has provided ₹1.44 lakh crore in support through the MISS scheme. With these latest measures, the government aims to increase agricultural short-term credit availability from ₹9.81 lakh crore in 2023-24 to ₹20 lakh crore by 2029-30.

By expanding rural credit facilities, the government is not only improving financial accessibility for farmers but also empowering them with greater economic independence. As these initiatives are rolled out nationwide, they have the potential to redefine agricultural lending in India, ensuring timely and affordable credit for those who need it most.

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