Pulwama, Feb 01: Farmers across various regions of Jammu and Kashmir have welcomed the increase in the Kisan Credit Card (KCC) loan limit from ₹3 lakh to ₹5 lakh, calling it a significant and much-needed step. They expressed their appreciation to Union Finance Minister Nirmala Sitharaman for fulfilling their long-pending demand.
The Union Finance Minister announced the increase under the Modified Interest Subvention Scheme while presenting the budget in Parliament on Saturday.
“Kisan Credit Cards (KCC) facilitate short-term loans for 7.7 crore farmers, fishermen, and dairy farmers. The loan limit under the Modified Interest Subvention Scheme will be enhanced from ₹3 lakh to ₹5 lakh for loans taken through the KCC,” she said, receiving a thundering applause from fellow parliamentarians.
Kulbhushan Khajuria, a progressive farmer from Jammu, told Rising Kashmir that increasing the KCC loan limit was a long-pending demand that has finally been fulfilled.
“We have been striving for this increase for many years,” Khajuria said. He added that with a loan limit of ₹3 lakh, farmers struggled to procure various agricultural equipment and inputs, including pesticides and fertilizers.
“The KCC loan has a very low interest rate, and increasing its limit will enable farmers to cover production expenses more effectively,” he said.
Riyaz Ahmad, a young farmer from Patalbagh village in Pulwama, also welcomed the announcement, calling it “good news for the farming community across the country.”
“The availability of credit at a low interest rate discourages small and marginal farmers from borrowing from private lenders, who charge exorbitant interest rates,” Riyaz said. He added that access to affordable credit empowers farmers by giving them financial independence.
“With cash in hand, a farmer has the flexibility to wait and sell his produce in the market when demand is higher,” he explained.
Irshad Ahmad, another progressive farmer, said that a large number of farmers have already benefited from the KCC scheme.
He added that with the increased loan limit, small and marginal farmers could now allocate a portion of the loan towards agricultural entrepreneurship, which, according to him, would improve their economic conditions.
The Kisan Credit Card (KCC) scheme aims to provide farmers with timely and adequate credit for agricultural activities. The Government of India offers a 2% interest subvention and a 3% Prompt Repayment Incentive, effectively reducing the interest rate to 4% per annum, making credit highly affordable for farmers.
