The Expansion of Kisan Credit Card (KCC) Scheme in Indian Agriculture

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Why in News?	The operative Kisan Credit Card (KCC) loan amount has surpassed ₹10.05 lakh crore in December 2024, benefiting 7.72 crore farmers.
What is KCC?	The Kisan Credit Card (KCC) is a banking product that provides farmers with affordable short-term credit for agricultural and allied activities.
Growth of KCC Loans	The operative KCC loan amount has grown from ₹4.26 lakh crore in March 2014 to ₹10.05 lakh crore in December 2024, reflecting the deepening of institutional credit in agriculture.
Modified Interest Subvention Scheme (MISS)	The government provides an interest subvention of 1.5% to banks for short-term agricultural loans through KCC. Farmers can avail loans at 7% interest, which is further reduced to 4% with a 3% Prompt Repayment Incentive (PRI).
Collateral-Free Loans	Loans up to ₹2 lakh under KCC are collateral-free, promoting financial inclusion for small and marginal farmers.
Budget 2025-26 Announcement	The loan limit under the Modified Interest Subvention Scheme has been increased from ₹3 lakh to ₹5 lakh to enhance financial support for farmers.