As agriculture is one of the most significant sectors in India, the government always extends credit facilities to the farmers. The Kisan Credit Card (KCC) is a credit scheme that provides affordable credit to the farmers. The scheme was introduced in August 1998. Kisan Credit Card is a type of credit card that allows farmers to access quick and convenient credit for their farming practices and other related activities.
The Kisan Credit Card scheme aims to fulfill the short-term credit requirements of small farmers who traditionally depend on informal finance, such as moneylenders, for their agricultural needs. With the help of this scheme, farmers can easily access credit facilities for various farming inputs, farming machinery, and other agricultural requirements.
Eligibility Criteria:
The Kisan Credit Card scheme is open to all farmers in the country. The following are the eligibility criteria for the Kisan Credit Card:
1. The applicant must be a farmer.
2. The age of the applicant should be between 18-75 years.
4. The applicant must have a bank account.
5. The applicant must own or lease farming land.
Features of Kisan Credit Card:
1. Interest Rate: The interest rate on Kisan Credit Card schemes may vary from bank to bank and may be linked with the prevailing bank rate.
2. Credit limit: The credit limit depends on the existing landholdings, crops involved, and production capacity.
3. Facility: The scheme provides an excellent facility for the farmer to access credit from the branch where he/she is transacting the business.
4. Repayment Period: The repayment period for Kisan Credit Cards is flexible. The farmer has the option to repay the loan amount either in one go or deferred, following the cash flow arising out of the crop production cycle.
5. Withdrawal Facility: The farmer can withdraw the loan amount in several installments or at a single withdrawal.
Advantages of Kisan Credit Card:
1. Easy access to credit: The Kisan Credit Card scheme makes it easy for farmers to access credit as they can apply for credit from any bank branch.
2. Lower Interest Rate: Farmers can avail the credit facilities at a lower interest rate compare to other credit facilities.
3. Financial Assistance: The scheme provides regular financial assistance to farmers for crop production, post-harvesting, and other agricultural operations.
4. Timely Access to Finance: With the help of this scheme, farmers can access timely credit facilities at specific stages of crop production.
5. All in one card: The Kisan Credit Card is an all-in-one card which serves the purpose of a credit card as well as an ATM card.
Conclusion:
The Kisan Credit Card scheme is one of the crucial initiatives by the government of India to provide credit and financial assistance to farmers. The scheme has benefited millions of farmers in the country and has helped improve their agricultural practices. It is essential to promote the Kisan Credit Card scheme and create awareness among farmers to utilize this scheme to its maximum potential. This will help in boosting the agricultural sector, provide financial assistance to farmers, and reduce the dependency on informal financial sources.