The government has increased the loan limit for Kisan Credit Cards (KCC), which are used by farmers, fishermen, and dairy farmers to get short-term loans. The new loan limit will be ₹5 lakh, up from ₹3 lakh. This change will help around 7.7 crore people in these sectors.
The KCC loans are mainly used by farmers to buy seeds, fertilizers, and equipment, as well as cover other farming costs. With the increased loan limit, farmers, fishermen, and dairy farmers will have access to more money, making it easier for them to manage their businesses and increase production.
This decision is part of the government’s effort to support farmers and improve their financial situation, especially since farming often faces challenges like weather problems and rising costs. The extra money can help these workers continue their work without worrying about financial issues.
In addition, the government will continue offering interest subsidies through the Modified Interest Subvention Scheme, making the loans more affordable for farmers and other eligible groups. This move is expected to make it easier for farmers and rural communities to thrive and improve their lives.