Chandigarh, January 7, 2025 (Punjab Khabarnama Bureau):Farmers often face a shortage of money in their lives, from planting crops to managing fertilizers, water, and other needs. To meet these requirements, farmers frequently borrow money at high-interest rates from moneylenders and banks. If the crop suffers damage or yields are low, this debt becomes a heavy burden. To prevent such situations, the government has launched an important loan scheme for farmers, known as the Kisan Credit Card (KCC).
Importance of the Kisan Credit Card Scheme
The Kisan Credit Card Scheme was launched in 1998 with the support of the Reserve Bank of India (RBI) and NABARD. The aim of this scheme is to provide farmers with loans at low-interest rates. Farmers can take loans by pledging their land, and under this scheme, they can borrow up to ₹3 lakh at an interest rate of 4%. However, if the loan amount exceeds this limit, the interest rate increases.
Loan Facility at Low Interest Rate
Under the Kisan Credit Card (KCC) scheme, farmers are provided loans at an interest rate of 9%. However, if the farmer repays the loan within a year, the central government provides a 2% subsidy, and an additional 3% incentive is given. As a result, the effective interest rate for farmers is just 4%, making it the cheapest loan in the country.
No-Collateral Loan up to ₹2 Lakh
Starting in 2025, the Reserve Bank of India (RBI) has made a significant decision. Now, under the Kisan Credit Card scheme, farmers will be eligible for loans up to ₹2 lakh without needing to pledge any property as collateral. This will make it easier for farmers to access funds.
Additional Benefits for Farmers
This new move by the RBI will prove to be highly beneficial for farmers. They will now be able to invest in their farming without the additional burden of high-interest rates or collateral requirements. This decision will help empower farmers and improve their financial conditions.
Summary: The Kisan Credit Card scheme offers low-interest loans up to ₹2 lakh without collateral, empowering farmers to invest in farming and improving their financial situation.