KCC Update: Are farmers turning away from farming? This figure of KCC accounts will surprise you..

A disturbing report has come to light regarding the Kisan Credit Card (KCC) scheme, which was started to increase the income of farmers and give them cheap loans. According to media reports, the number of KCC accounts in government banks has come down by 1.8% to just 2.25 crores in the financial year 2025, but during this time, the outstanding loan on these accounts has increased. In 2025, the total loan on KCC has increased by 2.2% to Rs 413 billion.

What is the reason behind the decline in KCC accounts?

According to a report by Business Standard, an official said that the decline in the number of KCC accounts is an indication that the way of taking loans in villages is now changing. He says that in the last few years, the income of farmers has increased slightly. Some farmers are leaving farming, while in some states, farmers are now giving more importance to farming-related loans like cooperative banks, NBFCs, or fertilizer cards instead of government banks. That is why there is a decrease in taking KCC loans from government banks.

Decrease in new KCC accounts
Punjab National Bank MD and CEO Ashok Chandra said that there is a decrease in the number of new Kisan Credit Card (KCC) accounts. He said that a major reason for this is that in most areas, eligible farmers have already got KCC. In the last few years, the government and banks have put a lot of emphasis on this scheme and added more and more farmers. That is why fewer new accounts are being opened now. Nevertheless, Chandra says that KCC is still the biggest means of taking loans for farming, and farmers are fulfilling their needs from it.

A cheap loan is available on the Kisan Credit Card.
Farmers get cheap loans for farming through Kisan Credit Card (KCC). Under this scheme, a loan of up to Rs 5 lakh can be availed. In this, Rs 3 lakh is given for crops and Rs 2 lakh for other works related to farming. The interest on this loan is only 7%. On top of this, the government gives a discount of 2% interest, and if the payment is made on time, then a bonus of 3% is also available. That means the farmer has to pay only 4% interest per annum. This is one of the cheapest agricultural loans in the country.

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