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RBI approves interest subsidies under KCC loans until March 2024: Kisan Credit Card

With the assistance of Kisan Credit card, the farmers of the nation can take credits at an extremely low-interest rate.

There are a lot of benefits to using the Kisan credit card. Using this card, farmers in India can apply for loans from the State Bank of India (SBI).The government has approved the continuation of the interest subsidy plan for Kisan Credit Card (KCC) short-term loans up to Rs 3 lakh for agricultural and related industries for the current and upcoming fiscal years.

The government provides banks with subsidies as part of the Kisan credit card program so that they can offer low-interest, short-term crop loans to farmers who work in agriculture and related industries like animal husbandry, dairying, fishing, and beekeeping, up to a maximum loan amount of Rs 3 lakh.

It’s important to note that farmers can get loans through the Center’s program at a 7% interest rate. Each year, farmers who make their loan payments on time receive a 3% interest subsidy.
The RBI has announced in a circular that the rate of interest subvention to lending institutions would be 1.5% for the two years 2022–23 and 2023–24.

This is how it will work. In contrast, for fiscal years 2021-2022, that same percentage of aid was 2%.It has decreased by 0.5 percentage points due to the time extension.

In order to discourage panic selling and encourage farmers to store their produce in storage facilities, interest subsidies will be offered to small farmers for six months following harvest in exchange for receipts of the goods stored in the recognized warehouse.

Wheat prices under close watch

The government has stated that it is keeping a close eye on the price of wheat and will take action to stop any significant increases in retail prices. According to the food secretary for the Union Sanjeev Chopra, there is a sufficient supply of emergency food.

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