PM Kisan Scheme: The government launched the PM Kisan Scheme to boost farmers’ incomes and provide financial assistance. The Central Government regularly implements various welfare schemes to increase farmers’ incomes, support agricultural activities, provide compensation for losses from natural disasters, facilitate low-interest agricultural loans, and ensure financial security in old age.

The primary objective of this scheme is not merely to provide financial aid to farmers but also to make agriculture more profitable and sustainable. Key schemes currently available for farmers include the PM Kisan Samman Nidhi, PM Fasal Bima Yojana (Crop Insurance Scheme), Kisan Credit Card, and PM Kisan Maandhan Yojana. Through these schemes, farmers receive benefits such as direct financial assistance, crop insurance, low-interest loans, and old-age pensions.

PM Kisan Samman Nidhi (PM-KISAN)

The PM Kisan Scheme is one of the Central Government’s most popular welfare schemes for farmers. It was launched with the aim of providing financial assistance to small and marginal farmers. Over time, the scope of the scheme has expanded, and financial aid is now transferred directly to the bank accounts of eligible farmers. Under this scheme, eligible farmers receive a total of ₹6,000 annually. This amount is not paid in a lump sum but in equal installments every four months, with ₹2,000 provided in each installment.

What is the objective of the PM Kisan Scheme?

The objective of the PM Kisan Scheme is to increase farmers’ income and assist with daily farming-related expenses. It helps farmers purchase seeds, fertilisers, and other agricultural inputs, thereby strengthening their financial position. The scheme provides annual financial assistance of ₹6,000, distributed in installments of ₹2,000 each.

How is the money received?

The government transfers this amount directly to the farmer’s Aadhaar-linked bank account via Direct Benefit Transfer (DBT). There is no role for intermediaries in this process; the system is designed to be transparent, ensuring the funds reach the farmers’ accounts directly.

Through which portal are payments made?

All payments are processed via the PM-KISAN portal.
Farmers can register on this portal.
They can subsequently check their application status.
They can check their names in the list of beneficiaries.
They can complete the e-KYC process.
Additionally, they can check the status of their installments.

PM Fasal Bima Yojana (PMFBY)

Farming is not easy; it is entirely dependent on the weather. Droughts, hailstorms, pests, and diseases can sometimes undo all the hard work put in by farmers. To provide financial security to farmers in such situations, the Central Government launched the PM Fasal Bima Yojana. Under this scheme, if crops are damaged due to natural disasters, excessive rainfall, drought, floods, storms, pests, or diseases, farmers receive financial assistance in the form of an insurance claim.

Objective of the PM Fasal Bima Yojana

The primary objective of the PM Fasal Bima Yojana is to provide financial security to farmers against crop loss. It aims to compensate for losses caused by natural disasters, reduce agricultural risks, and encourage farmers to continue farming. The government charges a very low premium from farmers; state governments bear the major share of the cost as subsidies—specifically, 2% for Kharif crops, 1.5% for Rabi crops, and 5% for horticultural crops.

How to apply for the PM Fasal Bima Yojana?

Farmers can apply online via the PMFBY portal. Alternatively, they can apply by visiting a nearby Common Service Centre (CSC) or through banks and the Agriculture Department. Key benefits of the scheme include low premiums, enhanced insurance coverage, direct bank transfers for claims, and reduced agricultural risk.

Kisan Credit Card (KCC)

Furthermore, farmers frequently require funds for agricultural expenses such as seeds, manure, fertilisers, pesticides, irrigation, labour, and machinery. If funds are not available on time, farmers may be forced to borrow from private moneylenders at high interest rates. The Kisan Credit Card (KCC) scheme was launched to address this issue. It is a banking facility that provides farmers with low-interest loans for agricultural activities and related tasks.

Interest Rates on Loans

It is worth noting that the government offers significant interest rate relief on Kisan Credit Cards. A subsidy of up to 2% is provided on the interest. Additionally, a 3% incentive is granted for timely repayments. After accounting for both these benefits, the effective annual interest rate for eligible farmers comes down to approximately 4%.

Pradhan Mantri Kisan Maandhan Yojana

A major concern for most farmers is financial security during old age. Unlike salaried employees, most farmers do not receive a regular pension. To address this, the Central Government launched the Pradhan Mantri Kisan Maandhan Yojana. The scheme aims to provide financial security for small and marginal farmers in old age by offering a regular monthly pension.

How ​​Much Pension is Provided?

Eligible farmers receive a minimum pension of ₹3,000 per month upon attaining the age of 60. This amounts to an annual pension of ₹36,000. Farmers aged between 18 and 40 years are eligible to invest in this scheme.

Required Documents for Application

Please note that the required documents may vary depending on the specific scheme; however, the following documents are generally required: Aadhaar card, bank account details, a mobile number linked to Aadhaar, land-related documents, passport-sized photographs, an identity proof, a residence certificate, and proof of age.

Conclusion

Schemes run by the Central Government—such as PM Kisan Samman Nidhi, PM Fasal Bima Yojana, Kisan Credit Card, and PM Kisan Maan-Dhan Yojana—are considered the most significant welfare initiatives for farmers. Under PM-KISAN, eligible farmers receive ₹6,000 annually in financial assistance, transferred directly to their bank accounts via DBT, while the PM Fasal Bima Yojana provides financial protection against crop losses from natural disasters, pests, and diseases.

The Kisan Credit Card scheme provides farmers with timely loans at low interest rates for activities such as agriculture, animal husbandry, and fisheries; meanwhile, the Pradhan Mantri Kisan Maan-Dhan Yojana ensures social and economic security in old age by providing a minimum monthly pension of ₹3,000 upon reaching the age of 60. Eligible farmers can avail themselves of the benefits of these schemes by registering for them in a timely manner.