KCC Loans Up to ₹5 Lakh for Farmers: When Will You Actually Get Them?
📅 1. Big Budget Announcement by the Finance MinisterIn the Union Budget 2025‑26, Finance minister Nirmala Sitharaman announced that the loan limit under the Kisan Credit Card (KCC) will be increased from ₹3 lakh to ₹5 lakh for short‑term agricultural credit under the Modified Interest Subvention Scheme (MISS). This is meant to benefit about 77 million farmers, fishers, and dairy producers across India.📈 2. What the ₹5 Lakh Limit MeansOnce implemented, eligible farmers should be able to take short‑term agricultural loans up to ₹5 lakh through their KCC — a significant rise from the previous ₹3 lakh cap. The scheme continues to offer interest subsidies, helping reduce the cost of borrowing.📆 3. When This Will Actually Be Rolled OutAlthough the announcement was made in February 2025, the higher loan limit had not been formally operationalised for farmers for some time because the government’s official notification and procedural rollout were pending. As of late 2025, some reports noted that banks were still offering loans at the old ₹3 lakh limit because the new rules were not yet fully notified to lenders.However, according to recent reports, the government and regulators are now moving ahead with the implementation, and the ₹5 lakh KCC loan limit is expected to come into effect from the next financial year (FY 2026‑27) — meaning farmers should begin to get access to the higher limit during 2026‑27 once the rollout is formally completed.📌 4. What Needs to Happen Before You Get ItBefore farmers can actually take loans up to ₹5 lakh:
✔ The Modified Interest Subvention Scheme update must be officially notified to banks.
✔ Banks need to update their systems and lending guidelines.
✔ Lenders will start offering the higher limit to eligible KCC holders once these procedural steps are completed, expected with the start of the next fiscal year.📍 5. Current Status (Early 2026)As of early 2026, farmers with KCC can still generally access loans up to ₹3 lakh under the existing system, with the ₹5 lakh rollout pending implementation. Many farmers are eagerly waiting for the formal notification so that banks can start offering the increased limit. The financial community expects this to be fully in place during the 2026‑27 fiscal year.Bottom Line✔ The Finance minister announced the increase in the KCC loan limit to ₹5 lakh in the Budget 2025‑26.
✔ The change wasn’t immediately implemented due to delays in official notification and rollout.
✔ Farmers are likely to start receiving the higher ₹5 lakh loans under KCC from the next financial year (2026‑27) once banks implement the updated limit. Disclaimer:The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.
✔ The Modified Interest Subvention Scheme update must be officially notified to banks.
✔ Banks need to update their systems and lending guidelines.
✔ Lenders will start offering the higher limit to eligible KCC holders once these procedural steps are completed, expected with the start of the next fiscal year.📍 5. Current Status (Early 2026)As of early 2026, farmers with KCC can still generally access loans up to ₹3 lakh under the existing system, with the ₹5 lakh rollout pending implementation. Many farmers are eagerly waiting for the formal notification so that banks can start offering the increased limit. The financial community expects this to be fully in place during the 2026‑27 fiscal year.Bottom Line✔ The Finance minister announced the increase in the KCC loan limit to ₹5 lakh in the Budget 2025‑26.
✔ The change wasn’t immediately implemented due to delays in official notification and rollout.
✔ Farmers are likely to start receiving the higher ₹5 lakh loans under KCC from the next financial year (2026‑27) once banks implement the updated limit. Disclaimer:The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.