Lok Sabha Question No. 1024 (UNSTARRED), answered on 2025-02-10
Subject: Loan Limit under Kisan Credit Card
Ministry: FINANCE
Asked by: Shri Bidyut Baran Mahato, Shri Dilip Saikia, Shri Lumbaram Choudhary

## Government of India Ministry of Finance

## Department of Financial Services

## LOK SABHA

## Unstarred Question No. 1024

Answered on Monday, 10 February, 2025/21 Magha, 1946 (Saka)

## Loan Limit under Kisan Credit Card

1024.  Shri Dilip Saikia:

Shri Bidyut Baran Mahato:

Shri Lumba Ram:

Will the Minister of FINANCE be pleased to state:

- (a) the maximum limit of loan amount provided to the farmers under the Kisan Credit Card Scheme at present and the number of farmers along with the amount of loan disbursed to them under the scheme during the last two years, State/UT-wise;
- (b) whether the interest rate of the scheme is much lower as compared to normal loans and if so, the details thereof;
- (c) whether the Government proposes to increase the loan limit under the Kisan Credit Card Scheme and if so, the details thereof; and
- (d) whether the Government proposes to extend the Kisan Credit Card Scheme to fund the agricultural tools and equipment and if so, the details thereof?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

(a) to (c): The loan limit under Kisan Credit Card (KCC) is calculated based on Scale of Finance fixed by State Level Technical Committee (SLTC). The Scale of Finance is determined per acre based on agro-climatic zones, cropping practices and seasonal variations etc. There is no maximum loan limit specified under Kisan Credit Card (KCC) scheme. However, Government of India under Modified Interest Subvention Scheme (MISS) provides Interest Subvention of 1.5% for providing short-term working capital loans at 7% p.a. Further, a Prompt Repayment Incentive of 3% is also provided to farmers on timely repayment of loans. Therefore, effective interest rate for farmers is 4%. In the Union Budget 2025-26 , the Government has announced to enhance loan limit under the MISS from Rs. 3 lakh to Rs. 5 lakh for loans taken through the KCC.

The number of farmers along with the outstanding loans under KCC during the last two years, State/UT-wise is placed at Annexure.

(d): As per the extant guidelines on KCC issued by RBI to the banks, investment credit for agriculture and allied activities including loan for purchase of agricultural tools and equipment is available under KCC.

******

## Statement referred to in part (a) to (c) of Lok Sabha Unstarred Question No. 1024 on 'Loan Limit under Kisan Credit Card' due for answer on 10.02.2025

State/UT-wise Operative Kisan Credit Card data as on 31 st March, 2023 and 31 st March, 2024 are as under :-

(Amount in Rs. crore and number of cards issued in '000)

| SN   | State/UT                         | Number of Operative KCCs   | Number of Operative KCCs   | Amount outstanding under Operative KCCs   | Amount outstanding under Operative KCCs   |
|------|----------------------------------|----------------------------|----------------------------|-------------------------------------------|-------------------------------------------|
| SN   | State/UT                         | As on 31.03.2023           | As on 31.03.2024*          | As on 31.03.2023                          | As on 31.03.2024*                         |
| 1    | Andaman and Nicobar Islands      | 9                          | 8                          | 38                                        | 23                                        |
| 2    | Andhra Pradesh                   | 4,552                      | 4,853                      | 60,879                                    | 65,455                                    |
| 3    | Arunachal Pradesh                | 10                         | 18                         | 81                                        | 195                                       |
| 4    | Assam                            | 688                        | 671                        | 4,119                                     | 4,615                                     |
| 5    | Bihar                            | 2,577                      | 2,683                      | 17,388                                    | 18,801                                    |
| 6    | Chandigarh                       | 1                          | 2                          | 99                                        | 126                                       |
| 7    | Chhattisgarh                     | 1,917                      | 2,147                      | 10,756                                    | 10,582                                    |
| 8    | Dadar &Nagar Haveli &Daman & Diu | 2                          | 2                          | 40                                        | 40                                        |
| 9    | Goa                              | 9                          | 12                         | 109                                       | 169                                       |
| 10   | Gujarat                          | 3,018                      | 3,137                      | 62,373                                    | 71,132                                    |
| 11   | Haryana                          | 2,287                      | 2,362                      | 50,042                                    | 54,000                                    |
| 12   | Himachal Pradesh                 | 458                        | 503                        | 8,009                                     | 9,072                                     |
| 13   | Jammu &Kashmir                   | 911                        | 1,067                      | 6,363                                     | 6,974                                     |
| 14   | Jharkhand                        | 968                        | 996                        | 5,200                                     | 5,560                                     |
| 15   | Karnataka                        | 4,720                      | 5,499                      | 54,161                                    | 62,794                                    |
| 16   | Kerala                           | 2,594                      | 2,592                      | 43,401                                    | 49,036                                    |
| 17   | Ladakh                           | 28                         | 28                         | 258                                       | 268                                       |
| 18   | Lakshadweep                      | 2                          | 3                          | 15                                        | 22                                        |
| 19   | Madhya Pradesh                   | 6,267                      | 6,500                      | 78,092                                    | 84,523                                    |
| 20   | Maharashtra                      | 7,175                      | 7,218                      | 70,329                                    | 78,018                                    |
| 21   | Manipur                          | 20                         | 20                         | 165                                       | 159                                       |
| 22   | Meghalaya                        | 72                         | 77                         | 360                                       | 467                                       |
| 23   | Mizoram                          | 35                         | 40                         | 315                                       | 373                                       |
| 24   | Nagaland                         | 30                         | 32                         | 179                                       | 192                                       |
| 25   | New Delhi                        | 3                          | 3                          | 44                                        | 43                                        |
| 26   | Odisha                           | 3,971                      | 4,466                      | 21,744                                    | 29,097                                    |
| 27   | Puducherry                       | 13                         | 20                         | 286                                       | 392                                       |
| 28   | Punjab                           | 2,198                      | 2,235                      | 55,423                                    | 57,830                                    |
| 29   | Rajasthan                        | 6,540                      | 6,846                      | 99,543                                    | 1,08,973                                  |
| 30   | Sikkim                           | 9                          | 10                         | 56                                        | 62                                        |
| 31   | Tamil Nadu                       | 3,580                      | 4,032                      | 42,132                                    | 52,112                                    |
| 32   | Telangana                        | 4,337                      | 4,509                      | 44,405                                    | 47,786                                    |
| 33   | Tripura                          | 199                        | 181                        | 507                                       | 556                                       |
| 34   | Uttar Pradesh                    | 10,705                     | 10,917                     | 1,28,115                                  | 1,38,621                                  |
| 35   | Uttarakhand                      | 509                        | 557                        | 6,365                                     | 6,479                                     |
| 36   | West Bengal                      | 3,132                      | 3,005                      | 14,531                                    | 15,856                                    |

* Provisional data

Source:

RBI's Report on Trend and Progress of Banking in India 2023-24