Utility: Good news for Kisan Credit Card holders! Now you will get this benefit!

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Kisan Credit Card offers many benefits. Farmers in India can apply for loans from the State Bank of India (SBI) using this card. The government has approved the continuation of the interest subvention scheme for short-term loans up to Rs 3 lakh for agriculture and allied industries acquired through Kisan Credit Cards (KCC) for the current and next financial years.

As part of the Kisan Credit Card program, the government subsidizes banks to enable them to provide low-interest, short-term crop loans to farmers engaged in agriculture and allied sectors, including animal husbandry, dairy, fishing, and beekeeping, up to a maximum of Rs 3 lakh. 

Significantly, the program of the Center provides loans to farmers at a preferential interest rate of 7 percent. Those farmers who repay their loans on time get an interest subsidy of 3 percent every year.

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Here's how it's going to work for the next two years

For two years 2022-23 and 2023-24, RBI has announced in a circular that the rate of interest subvention to lending institutions will be 1.5%. In contrast, the same percentage of assistance was 2% for the financial year 2021-22. As a result of the time extension, it has been reduced by 0.5 percentage points.

Small farmers will be offered an interest subsidy for six months after harvest in return for receipt of goods stored in recognized warehouses, with an aim to discourage farmers from panic selling and encourage them to keep their produce in storage facilities.

Keeping a close eye on wheat prices, the government has said it is monitoring wheat prices and will take steps to contain the steep rise in retail prices. Union Food Secretary Sanjeev Chopra has said that there is a sufficient supply of emergency food.