Union Budget 2026: Sitharaman keeps Kisan Credit Card scheme unchanged
In the Union Budget 2026, Finance Minister Nirmala Sitharaman kept the Kisan Credit Card (KCC) scheme unchanged.
This means around 7.7 crore farmers, fishers, and dairy workers can still get short-term loans as before.
The loan cap remains ₹5 lakh at a base rate of 7%, with eligible short-term KCC loans receiving an interest subvention that sets the rate at 7%, and a 3% prompt repayment incentive can reduce the effective rate to 4% when loans are repaid promptly.
Scheme helps farmers tackle rising costs, boosts productivity
The KCC scheme is a lifeline for millions in rural India, offering collateral-free loans up to ₹3 lakh for short-term crop loans, with lower sub-limits for some allied activities.
With over ₹10 lakh crore in outstanding loans across nearly 8 crore accounts—especially in states like UP, Gujarat, Maharashtra, and MP—the scheme helps keep credit affordable and reduces reliance on informal moneylenders.
Stable access to the scheme helps farmers handle rising costs and boost productivity.