In recent years, there have been positive changes in the debt system in the agricultural sector under Kisan Credit Card (KCC). According to the official note, the NBAS accounts in KCC accounts in various banking sectors have declined, which refers to deepening debt culture in the agricultural sector and an increase in debt discipline.
NPA reduction under KCC
According to the Reserve Bank of India (RBI) and the National Agricultural and Rural Development Bank (Nabard), the NPA in the KCC accounts of commercial banks was 15.1% in 2022 financial year, which now declined to 14.16% by December 31, 2024. In addition, the NPA has once found regional rural areas and joint bars. The NPA of regional rural banks has fallen from 9.5% to 7.1% to 7.9% to 6.5% from NPA to 6.9% to 6.5%. This decline illustrates debt income in agriculture and improvement in farmers’ debts.
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Growing importance of KCC
Through the KCC, farmers get time and affordable loans to buy seeds, fertilizers, pesticides and other farms. The depth of the debt in the agricultural sector has increased and the dependence of farmers in non -corporate loans has declined. By the end of the fiscal year 2022, the debt under KCC accounts was Rs.9.38 lakh crore, which was Rs.10.05 lakh crore by December 31, 2024.
Programs to benefit KCC holders
The Ministry of Agriculture has issued a short -term agricultural loan up to Rs. Also, there is 3% additional interest in the initial repayment, which makes the interest rate at 4%. In this scheme, the agricultural-debt limit has been increased to 2025-26 annually.
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Signs of progress in agricultural-law
Finally, the Ministry of Agriculture has allocated a budget of Rs 22,600 crore in the financial year 2026 for the Miss project. Over the past 10 years, KCC loans have been given a subsidy of Rs 1.44 lakh crore, which proves that the government is continuing to make efforts to promote loans in the agricultural sector and improve the financial situation of the farmers.
. Agriculture (T) Company Credit Flow (D) Short-Term Credit (D) Agricultural-Debt Limit 2025-26 (D) Post-Harvesting (D) Financial Assistance to Farmers
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