Agriculture Credit New Data 2025-26

Agriculture Credit

Agriculture Credit

For the fiscal year 2025-26, India’s agriculture credit target has been set at a record ₹32.50 lakh crore, a significant boost to the sector, with specific focus areas including animal husbandry, dairy, and fisheries, and NABARD projecting substantial potential linked credit plans. The government aims to enhance farmer access to credit through initiatives like digitizing processes and increasing limits for schemes like the Kisan Credit Card (KCC).

Agriculture Credit Target 2025-26

• Total Target: ₹ 32.50 lakh crore
• Sub-target (Allied Sectors): ₹ 5.0 lakh crore (Animal Husbandry, Dairying, Fisheries)
• Announced by: Ministry of Agriculture & Farmers Welfare, Govt. of India
• Framework: Ground Level Credit (GLC)

Year-wise Comparison

Key Implementing Agencies

• Banks: Commercial Banks, RRBs, Cooperative Banks
• Supervised by: Department of Financial Services (DFS)
• Supported by: NABARD & RBI (Priority Sector Lending Norms)

New Loan Limits (2025 Update)

Interest Benefit

• Banks generally charge 9 % interest on short-term agri loans.
• The Government of India gives a 2 % interest subvention to banks.
• Farmers who repay on time get an extra 3 % incentive, reducing the effective cost.
• Therefore, a farmer pays only 4 % p.a. if repayment is prompt; otherwise, 7 % p.a.

Coverage of KCC Loans

• Crop production (inputs, irrigation, etc.)
• Allied activities: Dairy, Fisheries, Poultry, Animal Husbandry
• Post-harvest expenses & marketing
• Investment in farm machinery, equipment & infrastructure

Current Reach

• 7.72 crore operative KCC accounts (as of Dec 2025)
• Total disbursed: over ₹ 10 lakh crore
• Focus on small & marginal farmers, SHGs, tenant farmers

Regulatory Framework

• Governed by Priority Sector Lending (PSL) norms of RBI.
• 18 % of total bank credit → must go to Agriculture sector.
• 10 % sub-target → for Small & Marginal Farmers.
• Kisan Credit Card (KCC) scheme supports short-term loans.
• Collateral-free limit raised to ₹ 2 lakh (from ₹ 1.6 lakh).

Important for Exams

• Agri Credit Target FY 2025-26 → ₹ 32.50 lakh crore
• Sub-target (Allied Sectors) → ₹ 5.0 lakh crore
• KCC Loan Limit → ₹ 5 lakh
• Collateral-free limit → ₹ 2 lakh
• Interest Rate → ~ 4 % (with subvention)
• Implemented under → GLC Framework
• Regulated by → RBI (PSL 18%)
• Supported Schemes → KCC, MISS, NABARD refinance

Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) Data

Q.1 What is the maximum loan limit covered under the Modified Interest Subvention Scheme (MISS) as per 2025 update?

• ₹ 3 lakh
• ₹ 4 lakh
• ₹ 5 lakh
• ₹ 6 lakh

Q.2 What is the base (normal) interest rate charged by banks on short-term crop loans before subvention?

• 7 %
• 8 %
• 9 %
• 10 %

Q.3 Under MISS, how much interest subvention is provided by the Government of India?

• 1 %
• 2 %
• 3 %
• 5 %

Q.4 What additional benefit is given to farmers who repay loans on time under MISS?

• Extra subsidy
• 3 % interest rebate
• 1-year extension
• No collateral

Q.5 What is the effective rate of interest for farmers who repay their loans on time under MISS?

• 3 %
• 4 %
• 6 %
• 7 %

Q.6 What is the collateral-free loan limit under Kisan Credit Card (KCC) as of 2025?

• ₹ 1.6 lakh
• ₹ 2 lakh
• ₹ 2.5 lakh
• ₹ 3 lakh

Q.7 Under which ministry is the Modified Interest Subvention Scheme implemented?

• Ministry of Agriculture & Farmers Welfare
• Ministry of Finance
• Ministry of Rural Development
• Ministry of Cooperation

Q.8 What is the agriculture credit target for FY 2025-26 set by the Government of India?

• ₹ 27.5 lakh crore
• ₹ 30 lakh crore
• ₹ 32.50 lakh crore
• ₹ 35 lakh crore

Q.10 Under Priority Sector Lending norms, what percentage of total bank lending must go to agriculture?

• 15 %
• 16 %
• 18 %
• 20 %

Several market reforms have been rolled out. These include

1. Model APLMC (Promotion & Facilitation) Act, 2017
2. Establishment of 22,000 number of Gramin Agriculture Markets (GrAMs) as aggregation platforms
3. Agri-Export Policy, that targets to double agri-exports by 2022
4. The Farmers Produce Trade and Commerce (Promotion & Facilitation) Ordinance, 2020
5. The Farmers (Empowerment & Protection) Agreement on Price Assurance and Farm Services Ordinance, 2020
6. Amendments to Essential Commodities Act, 1955, that deregulates various agri-commodities
7. Promotion of 10,000 FPOs by 2024

Creation of Corpus Funds

1. Micro Irrigation Fund – Rs. 5,000 crore
2. Agri-marketing Fund to strengthen eNAM and GrAMs – Rs. 2,000 crore
3. Agricultural Infrastructure Fund (AIF) to build agri-logistics (backward & forward linkages) – Rs. 1 lakh crore
4. Agriculture Accelerator Fund