New Delhi: Farmers across the country are facing a major financial crisis as many are unable to repay their loans under the Kisan Credit Card (KCC) scheme. The growing debt burden is creating serious challenges for them.
According to data from the Reserve Bank of India (RBI), the amount of outstanding loans under KCC accounts in scheduled commercial banks has increased by 42% over the past four years. A report states that by the end of March 2021, the total outstanding KCC loans stood at ₹68,546 crore, which surged to ₹97,540 crore by December 2024.
Banks report that loan defaults under KCC accounts are significantly higher compared to other loan segments. The Non-Performing Assets (NPA) in the KCC segment were recorded at ₹84,637 crore in 2021-22, rising to ₹90,832 crore in 2022-23, and further increasing in 2023-24.
By the end of the 2021-22 financial year, total KCC loans stood at ₹96,918 crore. As of March 2021, the total outstanding KCC debt was ₹4.57 lakh crore, which increased to ₹5.91 lakh crore by December 2024. In the first quarter of 2024-25, the outstanding loan amount stood at ₹95,616 crore.
During the July-September quarter of 2025, the total KCC loan burden is projected to reach ₹5.77 lakh crore. Banks estimate that NPA under the KCC segment may soon reach ₹97,000 crore.
The Kisan Credit Card (KCC) scheme was designed to provide short-term credit support to farmers for their agricultural and allied activities. However, with increasing loan amounts and rising defaults, the scheme is facing significant challenges.
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