Kisan Credit Card (KCC) is a special type of credit card that has been designed specifically for farmers in India. This card is a government initiative that aims to provide farmers with timely and adequate credit to meet their agricultural needs.
The Kisan Credit Card scheme was launched in 1998 by the Indian government in collaboration with the Reserve Bank of India (RBI) and the National Bank for Agriculture and Rural Development (NABARD). The main objective of this scheme is to provide farmers with flexible and affordable credit for their farming activities.
Under the Kisan Credit Card scheme, farmers are provided with a credit card that they can use to avail of credit from financial institutions like banks and cooperatives. The card provides the farmers with access to short-term credit for crop production, allied agricultural activities, and post-harvest expenses.
Key features of the Kisan Credit Card include:
1. Interest rate: The interest rate on Kisan Credit Cards is lower compared to conventional agricultural loans, making it affordable for farmers.
2. Flexibility: Farmers can use the credit card as per their requirements and repay the amount as per their convenience.
3. Insurance coverage: Kisan Credit Cardholders are eligible for insurance coverage against unforeseen events like natural disasters, accidents, and health issues.
4. Security: The Kisan Credit Card is a secure mode of credit for farmers, as it eliminates the need for carrying cash for agricultural expenses.
To apply for a Kisan Credit Card, farmers need to meet certain eligibility criteria like having a bank account and being a farmer engaged in agricultural activities. The card is issued by various financial institutions and cooperatives across India, making it easily accessible to farmers in rural areas.
In conclusion, the Kisan Credit Card scheme has been a game-changer for farmers in India, providing them with easy access to credit for their agricultural needs. This initiative has not only empowered farmers by enabling them to invest in their farming activities but also helped in boosting agricultural production and rural economy.