India’s Agri Credit Boom: How Farmers Got Four Times More Support

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India’s agriculture sector has seen a huge boost in institutional credit over the past decade. In 2013-14, banks and other formal lenders gave out Rs 7.3 lakh crore in loans to farmers. Fast forward to 2024-25, and that number has soared to Rs 27.5 lakh crore. That’s almost four times as much in just 11 years.

Here’s what’s behind the numbers:

The government set a target of Rs 27.5 lakh crore in agricultural loans for this year, which is about 11% more than what was actually given out last year.
This growth is thanks to several farmer-focused policies, better support prices, and easier access to credit. The idea is to give cultivators more security and help them invest in their farms.
The Kisan Credit Card (KCC) scheme has made a big difference. Over 465 lakh applications have been approved, with Rs 5.7 lakh crore in credit limits given out. Farmers who repay on time can get loans at interest rates as low as 4%.
Most of this credit (about 75%) comes from commercial banks, while cooperative and regional rural banks provide the rest.

It’s not just traditional farming that’s getting support. Sectors like dairy, fisheries, and poultry are also seeing more credit flow their way.

The government is working to make sure farmers in less-served regions get better access to these loans, aiming to reduce regional gaps.

This steady rise in institutional credit is helping farmers rely less on informal lenders and giving them more financial stability.

Source: The Hans India