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The Reserve Bank of India has made major changes in the Kisan Credit Card Scheme. The bank has issued a new official order under which now all the banks of the country will follow the same rules for giving loans to farmers. The purpose of these changes is that farmers should not face any problem in getting money for farming and the method of taking loan should become very easy and clean.

The bank has now confirmed the time by which the loan taken for the crop has to be returned. The bank has made it completely clear about the time taken from growing the crop to harvesting it and selling it. For small crops this time will be 12 months and for crops which take longer time this time will be 18 months. With this rule, the farmer will clearly know when he has to repay his loan. This will not create unnecessary pressure on the farmer and he will be able to do his farming work without any stress.

Loan facility without any collateral

The bank has given clear instructions that for a farming loan up to Rs 2 lakh, the farmer does not need to pledge anything. If a farmer pledges gold or silver on his own will, it will not be considered against the rules. Banks will decide their own rules for loans larger than Rs 2 lakh. Apart from this, if the loan has been taken against the pledge of crops or goods and there is a specific agreement for the same, then banks can waive the pledge condition for loans up to Rs 3 lakh.

Loan renewal instructions for banks

The bank has also made it clear that there is no plan to further increase the limit of loans without mortgage which was fixed in December 2024. All banks have been instructed to timely investigate small loans for agricultural purposes and take them forward. All these rules will be applicable to all the banks of the country and they will have to follow them. The main objective of these changes is that farmers do not face any hindrance in getting money to increase investment in farming and they can avail full benefit of their credit limit without any hassle.