The government has increased the interest subsidy loan limit for farmers from ₹3 lakh to ₹5 lakh. This change will help farmers get more affordable credit. The new initiative was discussed at a meeting at Rythu Vedika in Dharur on Saturday, where local officials explained how small and marginal farmers would benefit.
During the meeting, LDM Ayyappa Reddy shared that the Modified Interest Subvention Scheme (MISS) will allow farmers to take loans at a reduced 4% interest rate. This will ease their financial burden and encourage them to invest more in agriculture.
District Agriculture Officer Sakriya Naik added that the increased loan limit would support various farming activities, including crop production, horticulture, animal husbandry, and fisheries.
This decision is part of the Union Budget 2025-26, which prioritizes agriculture among its top ten focus areas. To discuss the budget’s implementation, a webinar on ‘Agriculture & Rural Well-being’ was held in Delhi on Saturday. Prime Minister Narendra Modi inaugurated the session, which was attended by senior officials from the Department of Agriculture & Farmers Welfare (DoA&FW), RBI, NABARD, commercial banks, cooperative banks, and Krishi Vigyan Kendras (KVKs).
The Economic Survey 2024 revealed that as of March 31, 2024, there were 7.75 crore active Kisan Credit Card (KCC) accounts, which play a vital role in meeting short-term financial needs for farmers. In addition to increasing the MISS loan limit, the Reserve Bank of India (RBI) has raised the collateral-free KCC loan limit from ₹1.6 lakh to ₹2 lakh.
At the Dharur meeting, officials assured farmers that steps are being taken to ensure smooth loan disbursal through banks and cooperative institutions. This will help farmers get funds on time without delays.
Key officials present at the event included LDM Ayyappa Reddy, District Agriculture Officer Sakriya Naik, Dharur Mandal Agriculture Officer, and several local farmers.
