Daijiworld Media Network - New Delhi
New Delhi, Jun 7: Over the past 11 years, Prime Minister Narendra Modi’s administration has overseen a remarkable expansion of institutional credit to the agriculture sector, with lending jumping from Rs 7.3 lakh crore in 2013-14 to a staggering Rs 27.5 lakh crore in 2024-25, the Ministry of Finance announced on Saturday.
This leap in agricultural credit, a nearly fourfold increase, underscores the government’s commitment to a “farmer-first” approach — one that aims to empower India’s cultivators with financial stability, fair prices, and unprecedented market opportunities.
“PM Modi has ensured that no ‘annadata’ — the lifeline of our nation — is left waiting for financial support,” the Ministry of Finance posted on X (formerly Twitter). “Institutional credit to agriculture has soared to Rs 27.5 lakh crore, ensuring timely access to funds and greater security for every farmer.”
The government highlighted that since 2014, India’s farmers have not only benefited from higher Minimum Support Prices (MSP) but also gained access to modern agri-infrastructure and expanded global markets, transforming them from local growers to key players on international shelves.
A key pillar of this transformation has been the Kisan Credit Card (KCC) scheme, which provides farmers with affordable, accessible credit to meet essential needs — from seeds and fertilisers to working capital for crop production and allied activities.
Finance Minister Nirmala Sitharaman revealed that over 465 lakh KCC applications have been approved, sanctioning credit limits totaling Rs 5.7 lakh crore. These loans are offered at interest rates as low as 4% for farmers who repay on time, thanks to an additional Prompt Repayment Incentive that reduces the effective interest rate by 3%.
“This means that for every Rs 1 lakh loan under KCC, a farmer can save up to Rs 9,000 per year in interest,” the finance ministry noted.
By ensuring prompt and affordable credit, the government says it has given farmers the confidence to invest in better inputs and modern practices — a step that’s helping India’s agriculture sector evolve into a global powerhouse.