NEW DELHI, 8 June 2025: Institutional credit to India’s agriculture sector has witnessed a remarkable rise, growing nearly fourfold in the last 11 years under Prime Minister Narendra Modi’s government. According to the Ministry of Finance, credit availability surged from INR 7.3 lakh crore in 2013-14 to INR 27.5 lakh crore in 2024-25.
The government attributes this growth to farmer-first policies that emphasize timely credit, enhanced support prices, and record payouts, ensuring stability and security for cultivators nationwide. Finance Minister Nirmala Sitharaman highlighted the significant role played by the Kisan Credit Card (KCC) scheme in enabling easy access to affordable short-term crop loans.
Since its inception, over 465 lakh KCC applications have been sanctioned with a credit limit of INR 5.7 lakh crore. The scheme offers loans up to INR 3 lakh at a subsidized interest rate of 4% when repaid on time, with an additional 3% prompt repayment incentive effectively reducing the cost of borrowing. This translates to savings of up to INR 9,000 per year for every INR 1 lakh loaned under KCC.
The Ministry emphasized that from small marginal farms to global markets, India’s farmers have gained dignity, assured income support, Minimum Support Price (MSP) benefits, improved agricultural infrastructure, and wider access to international trade — all contributing to a rising agricultural sector.
This credit expansion aligns with the government’s vision to empower farmers, boost productivity, and transform Indian agriculture into a more resilient and prosperous sector.
