Government Increases Loan Limit for Farmers to ₹5 Lakh
Gawal: In an important step to help farmers get affordable loans easily, the government has increased the loan limit under the interest subsidy scheme from ₹3 lakh to ₹5 lakh. This decision was discussed at a meeting held at the Rythu Vedika in Dharur Mandal.
The Union Budget 2025-26 has given special attention to farmers’ welfare, showing the government’s commitment to improving agriculture. Recognized as one of the ten main areas of development, agriculture remains a key factor in India’s economic growth.
As part of the budget plans, a webinar on “Agriculture & Rural Well-being” was held on March 1, 2025. The event was inaugurated by the Prime Minister and attended by officials from the Department of Agriculture & Farmers Welfare, RBI, NABARD, various banks, cooperative institutions, and farmers from all over the country.
According to the Economic Survey 2024, there were 7.75 crore active Kisan Credit Card (KCC) accounts as of March 31, 2024. The KCC scheme has helped farmers improve productivity and income by providing short-term credit. Under the Modified Interest Subvention Scheme (KCC-MISS), farmers can now get loans at a lower interest rate of 4%.
To make credit more accessible, the Reserve Bank of India (RBI) has increased the collateral-free KCC loan limit from ₹1.6 lakh to ₹2 lakh. Additionally, the Union Budget 2025-26 has raised the loan limit under the Modified Interest Subvention Scheme (MISS) from ₹3 lakh to ₹5 lakh. This change aims to reduce financial stress on small farmers and encourage more investment in agriculture. The higher loan limit will help in areas like crop production, horticulture, animal husbandry, and fisheries by meeting their financial needs.
Over the past ten years, the government has provided ₹1.44 lakh crore in support through the MISS scheme. With these new measures, the government plans to increase short-term agricultural credit from ₹9.81 lakh crore in 2023-24 to ₹20 lakh crore by 2029-30.
By expanding rural credit facilities, the government is making loans more accessible to farmers and helping them become financially stronger. These initiatives, when implemented nationwide, could transform agricultural lending in India, ensuring that farmers get timely and affordable credit when they need it.
Key officials present at the meeting included LDM Ayyappa Reddy, District Agriculture Officer Sakriya Naik, the Dharur Mandal Agriculture Officer, and several farmers.
