The Kisan Credit Card (KCC) scheme is a government initiative aimed at providing financial assistance to farmers in India. The scheme was introduced in 1998 by the National Bank for Agriculture and Rural Development (NABARD) and has since been widely adopted by financial institutions across the country.
The Kisan Credit Card scheme offers farmers access to timely and adequate credit to meet their agricultural and related expenses. The card functions as a single credit facility for farmers, allowing them to avail of loans for various purposes such as the purchase of inputs like seeds, fertilizers, pesticides, machinery, and other agricultural implements.
One of the key features of the Kisan Credit Card scheme is the flexibility it offers to farmers in terms of repayment. Farmers can repay the loan amount as per their convenience and financial ability, depending on their agricultural income cycle. This feature makes it easier for farmers to manage their finances effectively and ensures that they do not face undue financial pressure.
Additionally, the Kisan Credit Card scheme provides farmers with an interest subsidy of up to 3% for prompt repayment. This incentivizes farmers to repay their loans on time and helps reduce their overall borrowing costs.
To avail of the benefits of the Kisan Credit Card scheme, farmers need to approach their nearest bank branch or financial institution and fill out a simple application form. They will also need to provide proof of identity, address, and land ownership to complete the application process.
Overall, the Kisan Credit Card scheme has been instrumental in supporting farmers and enhancing their access to credit for agricultural activities. By providing timely and adequate financial assistance, the scheme has helped farmers improve their productivity, increase their income, and achieve sustainable agricultural growth.