Union Budget 2025: Boost to Agricultural Development with Expected Increase in Kisan Credit Card Limit

The Parliament’s Budget Session will commence on January 31. The first part of the session will run from January 31 to February 13, while the second part will begin on March 10 and conclude on April 4. Finance Minister Nirmala Sitharaman will present her 8th consecutive Union Budget in Parliament. The budget speech will start at 11:00 AM in the Lok Sabha. Copies of the budget will be available on the central government’s official portal: https://www.indiabudget.gov.in.

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These documents will be accessible in both Hindi and English. As in previous budgets, it is anticipated that this budget will include several significant announcements aimed at benefiting the agricultural sector, such as an increase in the Kisan Credit Card (KCC) limit, reduction in GST on agricultural products, and increased subsidies for agriculture. Notably, the government is likely to raise the Kisan Credit Card loan limit from ₹3 lakh to ₹5 lakh.

Increasing the Kisan Credit Card Loan Limit

The Kisan Credit Card (KCC) has proven to be highly beneficial for farmers, enabling them to easily avail of loans for agricultural activities. Farmers can secure subsidized loans through KCC even before the sowing season begins. Currently, the loan limit stands at ₹3 lakh, but it is expected to be increased to ₹5 lakh in this budget. This move will enhance the earning potential of farmers, enabling greater investments in agricultural activities. Farmers, livestock keepers, and fishers can utilize the KCC to access low-interest loans from banks with ease.

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The Kisan Credit Card scheme was launched to help farmers secure timely funds for harvesting crops. Through this card, farmers can avail of loans at low-interest rates, making it a highly effective financial support initiative. The scheme allows farmers to access the required funds on time. It also provides unsecured loans, affordable interest rates, and an online application process, making it a boon for farmers.

In the previous budget, ₹65,529 crore was allocated for agriculture-related schemes, reflecting the government’s continuous focus on developing the agricultural sector and supporting farmers. It is expected that funding for agriculture-related schemes in the upcoming Union Budget will be increased by 5–7%.

Kisan Credit Card loans are offered at an interest rate of 9%, but timely repayment makes farmers eligible for a 3% interest subsidy, effectively reducing the interest rate to 4%. With additional benefits for KCC holders, raising the loan limit to ₹5 lakh is expected to provide even greater advantages to farmers.

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