RBI proposes 6-year Kisan Credit Card loans: Benefits and more
The RBI is planning a big update to the Kisan Credit Card (KCC) scheme, stretching its tenure to six years and adding support for tech upgrades.
The goal? Make things simpler and more useful for farmers, building on a scheme launched earlier and reflecting recent reviews and proposed updates.
New crop cycle definition for better loan management
The new plan sets crop cycles at 12 months for short-term crops and 18 months for long-term ones, making repayments more predictable.
Farmers can borrow based on seasonal needs, with extra credit allowed for post-harvest expenses and tech improvements like soil testing or weather tools.
Who can apply for loans?
Now, not just landowners but also tenants, sharecroppers, SHGs, and JLGs can apply.
Banks will offer UPI payments and other digital options.
Plus, with programmable digital currency (CBDC), funds can only be used for farming needs—no detours.
If you've got thoughts on these updates, stakeholders are invited to provide feedback.