Module: General Practice
Q168: To support the agricultural sector, the Union Budget 2026-27 announced an enhancement in the limit for "collateral-free" loans under the Kisan Credit Card (KCC) scheme (Modified Interest Subvention Scheme). What is the new limit?
✅ Correct Answer: B
The limit has been enhanced to ₹5 Lakh.
Kisan Credit Card (KCC) provides short-term crop loans to farmers at subsidized interest rates.
The Interest Subvention (subsidy) was typically applicable up to ₹3 Lakh.
To cover rising input costs (fertilizers, seeds), the limit for the Modified Interest Subvention Scheme has been raised to ₹5 Lakh.
This means farmers can now access cheap credit (effectively 4% interest if repaid on time) for a larger amount, reducing their dependence on money lenders.
Kisan Credit Card (KCC) provides short-term crop loans to farmers at subsidized interest rates.
The Interest Subvention (subsidy) was typically applicable up to ₹3 Lakh.
To cover rising input costs (fertilizers, seeds), the limit for the Modified Interest Subvention Scheme has been raised to ₹5 Lakh.
This means farmers can now access cheap credit (effectively 4% interest if repaid on time) for a larger amount, reducing their dependence on money lenders.