Pulwama, March 24, 2025 – Muhammad Sadiq, a local farmer from Jammu and Kashmir, has hailed the Kisan Credit Card Scheme as a game-changer for farmer empowerment in the region.He emphasised how the scheme has provided farmers with greater financial independence, enabling them to sell their produce on their own terms and breaking the cycle of dependency on exploitative moneylenders.
Introduced in 1998 by the Government of India, the Kisan Credit Card Scheme aims to offer timely and affordable agricultural credit to farmers for their cultivation and allied needs. In the Union Budget 2025, Finance Minister Nirmala Sitharaman announced an increase in the scheme’s loan limit from Rs 3 lakh to Rs 5 lakh, further strengthening its impact. This move has been widely welcomed by farmers across the country, including those in Jammu and Kashmir.
Sadiq, reflecting on his experience, said, “The Kisan Credit Card Scheme has empowered us to decide when and where to sell our produce. Earlier, we had no choice but to borrow from moneylenders at high interest rates, which trapped us in debt. Now, with access to affordable credit, we have control over our earnings.” His sentiments echo a growing consensus among farmers that the scheme has reduced reliance on informal lending, a practice that has historically burdened rural households.
The scheme provides short-term loans at a concessional interest rate of 7% per annum, which drops to an effective rate of 4% for farmers who repay on time, thanks to a 3% Prompt Repayment Incentive under the Modified Interest Subvention Scheme (MISS). Additionally, loans up to Rs 2 lakh are collateral-free, ensuring small and marginal farmers can access funds without bureaucratic hurdles.
Agricultural experts note that this financial flexibility not only boosts farmer empowerment but also contributes to rural economic growth. “With cash in hand, farmers can wait for better market prices instead of selling immediately after harvest,” said an official from the Department of Agriculture. “This shift is a significant step toward reducing exploitation by middlemen and moneylenders.”
As of December 2024, the total amount disbursed under operative Kisan Credit Card accounts surpassed Rs 10 lakh crore, benefiting over 7.72 crore farmers nationwide, according to the Finance Ministry. The scheme’s expansion to include allied activities like animal husbandry and fisheries has further broadened its reach.
For farmers like Muhammad Sadiq, the Kisan Credit Card Scheme represents more than just credit—it’s a tool for dignity and self-reliance. As the government continues to enhance agricultural support, such initiatives are poised to reshape the future of farming in India, one empowered farmer at a time.