As agriculture remains a crucial sector for India’s economy, the government has initiated various measures to improve the condition of farmers and to make things easier on their financial front. One of the major steps is the Kisan Credit Card scheme, launched by the Ministry of Agriculture & Farmers Welfare, in 1998. It aims to provide financial assistance to farmers at a lower rate of interest, which could be used for various farming-related activities like purchase of fertilizers, seeds, and other inputs. Although the primary eligibility for KCC is being a farmer, there are certain documents that every applicant needs to submit, and one of them is the Granter.
So, who is a Granter? In simple terms, a Granter is someone who can guarantee that the borrower will repay the loan amount to the bank on time. Therefore, he becomes equally responsible for the repayment of the loan along with the borrower. Hence, a Granter is someone who can be trusted, and who has a reputation for being financially sound. The bank will verify the credentials of the Granter as well before approving the loan, as it has a significant role in the loan repayment process.
Usually, the Granter for a KCC can be anyone who meets the following criteria:
1. Must be a farmer who availed the KCC in the past, and has an existing KCC account.
2. Must have a good track record of timely loan repayment with the bank.
3. Should have knowledge of the farming business, and support the borrower in the farming activities.
Apart from these, the Granter’s landholding must be in the same village or a neighboring village where the borrower belongs to, and should have a loan account in the same bank for the past 2-3 years. Moreover, the Granter should not have any pending dues or other liabilities with the lending institution, and should be willing to provide the required assistance to ensure the successful implementation of the loan.
In conclusion, the Granter plays a crucial role in securing the KCC loan, as they guarantee the bank that the borrower will repay the loan on time. Therefore, the borrower must be careful while choosing the Granter, by looking for someone who is knowledgeable, financially sound, and has a good track record of timely loan repayments. Moreover, it is essential to maintain a healthy relationship with the Granter, and make sure that they are always up to date with the progress of the loan repayment process, and have complete trust in the borrower.