Kisan Credit Card: Is Your Farm Loan Limit ₹50K?

RBI has revised rules for Kisan Credit Cards, raising short-term credit limits and making it easier for small and marginal farmers to access flexible farm loans quickly through banks and cooperatives.

Here's what happened: RBI revised its Kisan Credit Card framework to set a ₹50,000 short-term credit limit for marginal farmers under simplified, flexi norms.. The updated guidelines create a unified framework covering agriculture, allied activities, and post-harvest expenses under one revolving credit facility.. Banks, cooperative societies, and regional rural banks must now follow these revised directions to ensure timely and adequate credit to farmer borrowers..

What you should do: Check with your nearest PSU bank, cooperative bank, or regional rural bank whether you qualify for a revised KCC under the new ₹50,000 flexi limit.. Gather documents — land records (Khasra/Patta), Aadhaar, and crop details — to apply for or upgrade your existing Kisan Credit Card quickly.. Compare interest rates across lenders: KCC loans typically attract 7% p.a. with government interest subvention bringing effective rate to as low as 4% for timely repayers..

If you repay your KCC outstanding within the due date every year, the government's 3% interest subvention scheme kicks in — cutting your effective borrowing cost to just 4% annually.