Cooperative banks continue to play a critical role in India’s agricultural credit system, with Ground Level Credit (GLC) disbursement reaching Rs 28.69 lakh crore in FY25, surpassing the target of Rs 27.5 lakh crore, according to the Economic Survey. Of this, Rs 15.93 lakh crore was extended as short-term loans and Rs 12.77 lakh crore as term loans, supporting both seasonal and long-term farm investment needs.
The Kisan Credit Card (KCC) scheme, a key channel for cooperative lending, had 7.72 crore operative accounts with outstanding balances of Rs 10.20 lakh crore as of March 31, 2025.
The scheme was further strengthened under the Modified Interest Subvention Scheme (MISS), which offers loans at a subsidised interest rate of 7 per cent, along with a 3 per cent incentive for prompt repayment. Between FY15 and FY26, subsidies worth Rs 1.77 lakh crore were disbursed under MISS.
Digital reforms have further enhanced efficiency. The Kisan Rin Portal integrates 20 State Cooperative Banks and 356 District Central Cooperative Banks, covering over 5 crore farmers.
The portal has flagged Rs 1,080.88 crore in duplicate or excess claims, reinforcing financial discipline and underlining the growing importance of cooperative banks in institutional farm credit.
