Kisan Credit Card loan can be repaid in 6 years:RBI proposes major changes; separate fund for soil testing and organic farming

The repayment period for a Kisan Credit Card (KCC) loan has been extended to six years. In addition to this, farmers will now be able to access financial support for modern agricultural practices such as soil testing and weather forecasting, along with activities like farming and animal husbandry. To make the scheme more flexible and aligned with current needs, the Reserve Bank of India (RBI) has released a draft of revised guidelines and invited public feedback until March 6, 2026. The updated rules will cover Commercial Banks, Small Finance Banks, Regional Rural Banks, and Rural Co-operative Banks. It is worth noting that the KCC scheme was previously expanded in 2019 to include Animal Husbandry, Dairy, and Fisheries. What is the Kisan Credit Card Scheme The Kisan Credit Card scheme was launched to provide timely and affordable loans to farmers for agriculture. Through this, farmers can avail credit for farming, post-harvest expenses, marketing of produce, domestic needs, maintenance of farm assets, and allied activities. Under the scheme, support is provided for short-term and long-term cultivation needs, as well as for household expenses. This prevents farmers from relying on expensive informal loans. In 2019, it was also extended to the Animal Husbandry, Dairy, and Fisheries sectors. What new changes has RBI proposed? RBI has suggested several important changes in the draft to make the scheme more flexible and tailored to the needs of farmers… What expenses will now be covered for modern farming The draft focuses on supporting technology interventions. Under the 20% additional provision, these expenses will now also be eligible… This will enable farmers to adopt modern methods easily. What will farmers benefit from? These changes are very beneficial for farmers. Longer loan tenure will reduce repayment pressure. With credit limits aligned with actual expenses, there will be no shortage of funds. Covering technology-related expenses will promote organic farming and better practices. Overall, the scheme will become more flexible and connected to real farming needs. Dependence on expensive informal loans will also decrease. When and how can feedback be given?
RBI has sought feedback from regulated entities, the public, and other stakeholders until March 6, 2026. Farmers or any individual can send their opinions via email or through the RBI website. Final guidelines will be issued after the feedback. What were the provisions in the previous scheme?
Previously, the crop season duration varied across banks, causing confusion. The loan tenure was also short. Technology-related expenses were not covered separately. Now, efforts have been made to address all these shortcomings.