Budget 2021: Big News for Farmers! Government Likely to Increase Kisan Credit Card Limit; Details Inside

The central government will present the Union budget 2021 tomorrow, 1^st February. Everybody including the farmers are eagerly waiting for some big announcements from the Modi Government.

It is important to mention that the farm sector has remained relatively unharmed during the lockdown and the credit for this obviously goes to the farmers but still the Annadatta’s are fighting for their rights and against three farm laws since past two months. Therefore it is a big challenge for the Modi Government to solve the issue and make the farmers happy.

Budget 2021: KCC limit may increase

The Kisan Credit Card was introduced with the aim to free farmers from the clutches of private moneylenders. Recently UP Government has distributed Kisan Credit Card to more than 12 lakh farmers in the state. Now the government is planning to increase the limit of KCC so that farmers can get more benefits through it.

What is the KCC limit

Loans up to Rs 3 lakh are given through Kisan Credit Card, which is at a much lower rate of interest than the market. Farmers meet their agricultural needs through KCC at an interest rate of 7 percent per annum. If the KCC loan is paid before time, then an additional discount of 3 per cent is provided. This means that farmers get a loan for a whole year at just 4 per cent.

Crop insurance is also available

Farmers can also insure their crop with the Kisan credit card. They also get compensation in case of crop failure due to any reason (flood or drought).

Kisan Credit Card Scheme 2021

Key features of Kisan credit card are;

• All the farmers of India can avail the benefits of Kisan Credit Card Scheme

• Loan up to Rs. 1.60 lakhs without collateral is given through Kisan Credit Card.

• Aim to give KCC to more than 14 crore farmers

How to Apply for KCC

• Go to the official site of any bank of your choice & visit Kisan Credit Card section.

• Download the application form.

• Then fill the application form carefully.

• Visit the nearest bank branch and submit the application along with necessary documents.

• The loan in-charge will give the details to the applicant.

• KCC will be dispatched soon.