📰 Latest on Kisan Credit Card (KCC) — What Farmers Should Know

 📰 Latest on Kisan Credit Card (KCC) — What Farmers Should Know

New Delhi, October 11, 2025 — The Kisan Credit Card (KCC) scheme remains under the spotlight as the government and regulatory bodies take steps to expand, strengthen, and safeguard it — even as fraud and repayment challenges persist.

📈 Key Developments & Policy Moves

Extension of Interest Subvention Scheme (MISS FY26)

The Union Cabinet recently approved the continuation of the Modified Interest Subvention Scheme (MISS) for fiscal year 2025–26. Under this scheme, farmers availing short-term KCC loans will continue to benefit from a subsidised interest rate. 

Farmers who repay promptly can access effective interest rates as low as 4% (7% nominal rate minus incentives). 

Loan Limit Raised to ₹5 lakh

In the 2025–26 Union Budget, the government increased the KCC loan limit from ₹3 lakh to ₹5 lakh under the MISS scheme. This is expected to help farmers meet higher capital requirements for inputs, allied activities, and risk management. 

Scale of KCC Loans Crosses ₹10 Lakh Crore

As of December 2024, the total outstanding under operative KCC accounts crossed ₹10.05 lakh crore, benefiting 7.72 crore farmers. This is a major milestone in agricultural credit expansion. 

Continuing Fraud Cases & Asset Restitution

In Andhra Pradesh, the Enforcement Directorate (ED) recently restituted properties worth ₹56.13 crore in connection with a KCC fraud involving IDBI Bank branches. Those properties had been attached during investigation of a KCC loan fraud of ~₹181.87 crore. 

Decline in KCC Accounts in Some Banks

Despite growth in credit volume, KCC accounts in government banks saw a marginal decline in FY25, indicating possible consolidation, exiting borrowers, or account closures. 

No Waiver Proposal in J&K

The government of Jammu & Kashmir clarified that there is currently no proposal under consideration to waive KCC loans up to ₹3 lakh, despite public pressure. 

🔍 Challenges & Concerns

Debt Trap & Renewal Cycle

Some farmers cannot get a fresh KCC loan until the previous one is fully repaid. To circumvent this, middlemen sometimes help with temporary repayment at steep costs, trapping farmers further. 

Rising Liabilities

In states like Punjab, debt under the KCC scheme is growing fast— Rs 10.2 lakh crore outstanding nationally as of March 2025. 

Verification Gaps

Fraud cases in places like Manipur alleged misuse of voter ID cards to open KCC accounts without farmers’ knowledge. Over 1,200 farmers claimed to be defrauded in such a scam. 

🎯 What Farmers & Stakeholders Should Watch

1. Apply carefully & repay promptly — to avail full subvention benefits.

2. Document retention & property titles — to safeguard from fraud.

3. Monitor policy changes yearly, especially subvention scheme and limit changes.

4. Watch state-level decisions — as loan waivers or state subsidies can differ.

5. Demand transparency — in sanctioning, disbursal and reenlistment processes.

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