Big Relief for Farmers: Now KCC loan up to 5 lakhs available at just 4%, interest subsidy and easy conditions

News India Live, Digital Desk: A very important and relief news is coming from the central government for the country’s Annadas, farmers. The government has increased the loan limit received under the ‘Kisan Credit Card’ (KCC) scheme, so that farmers will now be able to get loans up to Rs 5 lakh at very concessional rates. The move aims to provide easy and cheaper debt to farmers for farming -related activities, so that they can meet their economic needs and avoid the debt of moneylenders’ debt. But the central government provides a large subsidy of 2 percent on this. After this government exemption, farmers had to pay only 5 percent interest. Now another attractive benefit has been added to this scheme: If farmers pay this loan at the scheduled time, then they get an additional discount of 3 percent from the government. This directly means that if the farmers return their debt on time, then they will be able to get a loan of up to Rs 5 lakh at an incredibly low interest rate of only 4 percent per year! This in itself is a huge assistance for the agriculture sector. The Kendra government has made another major change in this scheme and relaxed a significant condition for the farmers. Earlier, farmers did not need to give any guarantee (mortgage) for loans up to Rs 1 lakh, which was called ‘collateral-free’ loan. Now this limit has been increased to 1 lakh 60 thousand rupees. That is, if the farmers take a loan of up to 1 lakh 60 thousand rupees, then they will not need to mortgage any land or property with the bank. It is especially beneficial for small and marginal farmers, who often had difficulty in arranging guarantee. The farmers credit card scheme is designed for objectives like buying agricultural equipment for farmers, raising fertilizers-seeds and meeting their daily expenses. The purpose of this scheme is to prevent them from taking loans from moneylenders at higher interest rates, so that their income increases and they can become financially stronger and self -sufficient. The application process has also been simplified, so that farmers can easily apply online or offline through any means and can get this financial assistance on time. This step will definitely give a new pace to the Indian agriculture and rural economy.