Agriculture is a very difficult profession. You have to invest a lot of capital and resources and wait until the season is favourable. Even then, a lot can happen — it would rain more or less, leading to droughts and floods, a new bacterium/virus could emerge and destroy the crop etc. That is why Modi Sarkar launched the Kisan Credit Card scheme to help Indian farmers stay away from money lenders in the unorganised sector who charge high interest rates.
Read More: Ration Card
What Is Kisan Credit Scheme?
The KCC scheme was launched to ensure farmers receive adequate and timely credit for their agricultural activities. On the other hand, farmers avail of credit at a highly subsidised rate of interest of 4% per annum, benefiting from an interest subsidy of 2% from the Government of India and an immediate repayment incentive (IRI) of 3%.
KCC scheme was broadened to Farmers’ Investment Credit needs, i.e., Non/Agricultural activities, and modified in 2012 by a working group under the Chairmanship of Shri T. M. Bhasin, CMD, Indian Bank, to simplify the scheme and facilitate the issue of electronic Kisan Credit Cards.
This scheme gives the banks detailed instructions on implementing the KCC program. KCC loans include post-harvest expenses, other consumption requirements, and loans for investments in agriculture and allied activities.
This govt scheme is run through commercial, small finance banks and cooperatives. The government implemented a Credit Card scheme that streamlined the process for farmers to secure timely and sufficient credit.
Read More: Ayushman Card
Conclusion
The Kisan Credit Card scheme offers the necessary credit to farmers in a simplified way, providing them with timely and affordable credit for their farming requirements.
To learn more about this govt scheme click here,
