Latest news with #KCCs
Time of India
24-07-2025
- Business
- Time of India
Fewer borrowers, bigger burden: Punjab's Kisan Credit Card debt rose Rs 2cr per day in 4 years, now Rs 57,536 cr
1 2 Chandigarh: Despite being the agricultural heartland of India, Punjab continues to grapple with a mounting debt burden under the Kisan Credit Card (KCC) scheme —a trend that highlights deepening financial stress in the state's farm economy. This rise in outstanding loans — which was Rs 2 crore every day — has occurred despite a drop in the number of active KCC accounts, raising questions over repayment capacity and increasing dependency on credit among farmers. According to data presented in the Lok Sabha by the Union ministry of finance in response to a query by BJP MP Rajesh Naranbhai Chudasama, Punjab's outstanding loan amount under KCC scheme rose from Rs 54,526 crore in March 2021 to Rs 57,536 crore in March 2025 — an increase of Rs 3,010 crore (5.52%). Give than there were nearly 1,500 days in this time period, the credit burden rose nearly Rs 2 crore every day. During the same period, the number of operative KCCs declined from 2.244 lakh to 2.168 lakh, indicating a high per-card loan exposure. The KCC scheme, launched in 1998, was designed to provide timely and hassle-free credit to farmers for activities such as crop production, post-harvest expenses, and working capital for agricultural assets. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Unsold 2021 Cars Now Almost Free - Prices May Surprise You Unsold Cars | Search Ads Learn More Undo It is implemented through commercial banks, cooperative banks, and regional rural banks. The Modified Interest Subvention Scheme (MISS) offers an interest subvention of 1.5% on short-term working capital loans up to Rs 3 lakh at 7% interest, with an additional 3% incentive for prompt repayment. While Punjab's loan growth is modest in percentage terms, the increasing liability despite fewer cardholders underlines a worrying trend. In Haryana, loans grew Rs10,055cr In comparison, Haryana has seen a more pronounced rise in both card issuance and debt levels. The number of active KCCs in Haryana grew from 2.264 lakh in 2021 to 2.4 lakh in 2025, while outstanding loans surged by Rs 10,055 crore—from Rs 45,356 crore to Rs 55,411 crore, a 22.2% rise. 44.4% rise in Himachal Pradesh In Himachal Pradesh, the rise has been even sharper in percentage terms. The hill state's outstanding KCC loan increased from Rs 6,626 crore in 2021 to Rs 9,572 crore in 2025, marking a 44.5% increase. The number of KCC holders also went up from 39,200 to 51,000, reflecting improved credit access but also a growing credit footprint. KCC loans now at Rs 10.2L cr in India Nationally, the outstanding loan under the KCC scheme has ballooned to Rs 10.2 lakh crore as of March 2025, up from Rs 7.53 lakh crore in 2021. The govt has reiterated that to support timely repayments and reduce defaults, farmers are provided incentives for prompt repayment, alongside subsidised interest rates through MISS.
Time of India
20-05-2025
- Politics
- Time of India
Congress MLA and former Haryana CM Bhupinder Singh Hooda demands rollback of 7% interest on farm loans
Chandigarh: Former Haryana chief minister and Congress MLA Bhupinder Singh Hooda on Tuesday expressed opposition to the central govt's decision to charge 7% interest on crop loans and asked it to roll back the decision. He said the previous Congress-led UPA govt took a historic decision to reduce the interest rate on crop loans from 11% to 4% across the country. "This decision was taken on the recommendations of the committee of chief ministers headed by me. Also, in Haryana, our govt completely abolished the interest on crop loans and made it zero, but now the BJP has increased it to 7%, which is a direct loot of farmers," he said. The Centre had recently imposed a 7% interest rate on short-term crop loans through the Modified Interest Subvention Scheme (MISS). This applies to loans taken through Kisan Credit Cards (KCCs) up to Rs 3 lakh. Responding to questions at his residence, Hooda said despite having the govt in both the state and the Centre, BJP could not get water for Haryana. "BJP's double engine govt has double-cheated the public. This time there was neither a shortage of water in Bhakra nor did Haryana demand additional water," he said. He added that despite repeated demands, BJP could not ensure proper participation of Haryana in meetings of the Bhakra Beas Management Board. "Now, since Haryana is sure to get water from May 21 (new water cycle), the govt is busy passing time by making baseless statements," he added. He said this was the Congress had demanded a special session of the assembly to discuss the issue. "It should be clear who is responsible for the harm to Haryana, and an all-party delegation should also be sent to meet the Prime Minister," he said.
