The outstanding credit under the Kisan Credit Card scheme in Jammu and Kashmir has witnessed a rise, crossing Rs 7,379 crore as of March 31, 2025.
This was revealed in a written reply in Parliament by Union Minister of State for Finance Pankaj Chaudhary.
The number of active KCC accounts in the Union Territory stood at 11.13 lakh as of March 2025, an increase from 10.09 lakh in March 2021. In terms of credit volume, outstanding KCC loans in J&K rose from Rs 6,518 crore in 2021 to Rs 7,379 crore in 2025, showing a consistent upward trend despite minor fluctuations in the intervening years.
The year-wise data provided in the response shows that in March 2022, 10.24 lakh KCCs were operational with Rs 6,292 crore outstanding. In 2023, the number rose to 10.37 lakh with Rs 6,363 crore outstanding. By March 2024, there were 10.80 lakh active cards and Rs 6,974 crore in credit. The most recent figures indicate a further rise, taking the total to 11.13 lakh cards and Rs 7,379 crore in loans.
The KCC scheme, introduced by the Government of India, aims to provide timely and hassle-free credit to farmers for cultivation, post-harvest expenses, and allied agricultural activities.
Implemented through scheduled commercial banks, cooperative banks, and regional rural banks, the scheme has become a backbone of rural credit delivery.
To ease the burden on farmers, the government continues to operate the Modified Interest Subvention Scheme (MISS). Under this, farmers availing short-term loans up to Rs 3 lakh at an interest rate of 7% per annum receive an interest subvention of 1.5% to banks.
Farmers who repay their loans on time are eligible for a 3% prompt repayment incentive, bringing down the effective interest rate to 4%. However, the government clarified that this interest subvention benefit is available only on crop loans extended through KCCs.
Loans availed for other agricultural purposes such as purchasing machinery, land development, or standalone animal husbandry ventures outside the KCC scheme are not covered under this concession.(KNS)
