Number of Operative Kisan Credit Cards Down by 2.7%, Yet 4.5% Increase in Loans on KCC

In the financial year 2024-25, the number of operative Kisan Credit Cards (KCC) declined by 2.7%. Despite this, loans taken under the KCC scheme increased by 4.5%, according to the Reserve Bank of India's annual report for 2024-25.

As per the RBI report, there were 29.81 million operative Kisan Credit Cards in 2023-24, which decreased to 29.02 million in 2024-25. However, the outstanding crop loan amount under KCCs rose from Rs 4,93,362 crore to Rs 5,07,821 crore. Outstanding term loans increased from Rs 46,332 crore to Rs 55,047 crore. Loans for animal husbandry and fisheries grew from Rs 35,279 crore to Rs 38,107 crore. Overall, total loans under the Kisan Credit Card scheme rose from Rs 5,74,974 crore to Rs 6,00,975 crore.

The report also highlights that the growth rate of credit disbursed by banks to the agriculture and allied sectors slowed in the last fiscal year. In 2023-24, bank loans to agriculture and allied sectors grew by 20%. The growth rate was 19.8% in April 2024 and 21.6% in May 2024, but it declined in the subsequent months. By March 2025, credit to the agriculture and allied sectors had increased by only 10.4%. The average growth for the entire year stood at 15.69%.

The report also details key policy initiatives undertaken for the agriculture sector during 2024-25. On August 6, 2024, the government decided to continue the Modified Interest Subvention Scheme (MISS) for short-term loans taken via Kisan Credit Cards for agricultural and allied activities during 2024-25.

Considering rising inflation and increasing agricultural input costs, a decision was made on December 6, 2024, to raise the collateral-free loan limit for agriculture from Rs 1.6 lakh to Rs 2 lakh per farmer. This new limit came into effect on January 1, 2025. Additionally, in the 2025-26 Union Budget, the credit limit under MISS for KCC was increased from Rs 3 lakh to Rs 5 lakh.