Kisan Credit Card Scheme

The Kisan Credit Card (KCC) Scheme is a special credit scheme introduced in India to meet the credit requirements of farmers for agricultural and related activities. It was launched by the Government of India in August 1998, with the aim of providing timely and adequate credit support to farmers to meet their cultivation expenses, as well as other agricultural and family expenses.

Key Features of the Kisan Credit Card Scheme:

1. Eligibility: All farmers, including individuals, joint cultivators, sharecroppers, tenant farmers, oral lessees, and SHGs (Self-Help Groups) or JLGs (Joint Liability Groups) of farmers are eligible to apply for a Kisan Credit Card.

2. Purpose of the Loan: The KCC provides credit for various agricultural activities, including crop production, post-harvest expenses, the purchase of agricultural inputs, working capital for maintenance of farm assets, and other farm-related activities.
3. Credit Limit: The credit limit is determined based on the cropping pattern, operational landholding, and the scale of finance. The limit can be revised annually based on the repayment behavior and the farmer’s credit requirement.
4. Flexible Repayment: Farmers have the flexibility to repay the loan as per their cash flows. The repayment period is usually linked to the harvesting and marketing period of the crops.
5. Interest Subvention: The government provides interest subvention (subsidy) to farmers who make timely repayments. This reduces the effective interest rate for the farmers, making credit more affordable.
6. Kisan Credit Card as Identity Proof: The KCC also serves as an identity card for the farmers, making it easier for them to access various government services and schemes.
7. Insurance Coverage: Many Kisan Credit Cards come with an optional component of crop insurance to protect farmers from losses due to natural calamities, pests, and diseases.
8. Electronic Transaction Facility: Kisan Credit Card holders can access their credit facilities through ATMs and make electronic transactions, facilitating easy and convenient banking services.
9. Subsidized Interest Rate: The interest rates for Kisan Credit Cards are often subsidized, making credit accessible to farmers at lower rates compared to other types of loans.
10. Usage Beyond Crop Loans: While the primary focus is on crop loans, Kisan Credit Cards can also be used for activities like animal husbandry, fisheries, and other allied agricultural activities.
The Kisan Credit Card Scheme has played a significant role in providing timely and hassle-free credit to farmers, empowering them to invest in their agricultural operations and improve their overall productivity and income. It has become an essential tool for financial inclusion in rural areas, ensuring that farmers have access to credit facilities to support their agricultural activities.
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