Budget 2025-26: Higher loan limit may benefit 10% of KCC accounts

Even now, KCC loan limits are also gradually expanded periodically based on the repayment capacity and overall credit profile of the customer

One of the big Budget announcements of expanding the Kisan Credit Card (KCC) loan limit for farmers from Rs 3 lakh to Rs 5 lakh will apply only to accounts that have a good repayment track record and those primarily engaged in commercial farming. This number as of now is 8 million of the total 77.7 million KCC accounts, said senior government officials. 

This would mean that the additional subsidy burden due to the interest subvention could marginally be more than the FY26 Budget Estimates of Rs 22,600 crore to around Rs 26,000 crore, thus not causing undue burden on