Kisan Credit Card Scheme: New Loan Limit and Benefits for Farmers in 2025-26 Budget
The 2025-26 Union Budget, presented by Finance Minister Nirmala Sitharaman, introduces a significant increase in the Kisan Credit Card loan limit from ₹3 lakh to ₹5 lakh. This decision is set to benefit farmers, animal husbandry, and fish farming industries by offering loans at lower interest rates, ensuring easier access to financial support for agricultural development.
On February 1st, the central government is presenting the Union Budget. Finance Minister Nirmala Sitharaman is presenting it for the 8th time. This much-awaited budget is expected to bring good opportunities for the agricultural sector. In this context, a new announcement regarding the Kisan Credit Card has been made in the 2025-26 Budget, which is seen as a major positive development for farmers.
The government has increased the loan limit for Kisan Credit Cards, which is a great relief to farmers. The loan limit has been raised from ₹3 lakh to ₹5 lakh. This long-standing demand of farmers for an increase in the Kisan Credit Card limit has now been fulfilled by the government. The government has been introducing and implementing various welfare schemes for farmers, and one of these is the Kisan Credit Card scheme.
Through this, farmers can avail loans at a lower interest rate, and their income levels are also expected to rise. Launched in 1998, the scheme provides short-term crop loans to farmers. Farmers can avail of this loan at an interest rate of 9%, and the government offers a 2% subsidy on the interest rate. Additionally, farmers who repay the loan on time are eligible for a further 3% rebate, making the effective interest rate only 4%. Not only farmers, but also those involved in animal husbandry, fish farming, and similar industries can avail financial assistance under the Kisan Credit Card scheme.
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