The Kisan Credit Card (KCC) Scheme was introduced by the Government of India in 1998 to provide timely and adequate credit to farmers for agricultural activities. This scheme aims to enable farmers to have easy access to credit facilities and help them meet their financial needs without facing any hassle.
Under the KCC Scheme, farmers are provided with a credit card that can be used to avail short-term loans for agricultural purposes. These credit cards are issued by various financial institutions, including banks and cooperatives, in collaboration with the government. The credit limit on these cards is determined based on the farmer’s landholding and cropping pattern.
One of the key features of the KCC Scheme is the interest rate subsidy provided by the government. Farmers availing loans through the KCC Scheme are eligible for a lower interest rate compared to conventional agricultural loans. This subsidy helps reduce the financial burden on farmers and makes credit more affordable for them.
The KCC Scheme also offers flexible repayment options to farmers. They can repay the loan amount as per their convenience, depending on their agricultural income. This flexibility helps farmers manage their finances better and ensures that they do not face any financial stress while repaying the loan.
Additionally, the KCC Scheme allows farmers to withdraw money from ATMs using their credit card, making it convenient for them to access funds when needed. Farmers can also use the credit card to purchase agricultural inputs like seeds, fertilizers, and pesticides, further simplifying the process of farming.
Overall, the Kisan Credit Card Scheme has been instrumental in providing financial support to farmers and promoting agricultural activities in the country. It has played a significant role in empowering farmers and improving their livelihoods by ensuring easy access to credit facilities. The government continues to expand and enhance the KCC Scheme to reach more farmers and support them in their agricultural endeavors.