The Kisan Credit Card (KCC) scheme is a government initiative launched by the National Bank for Agriculture and Rural Development (NABARD) in 1998 with the objective of providing short-term formal credit to farmers. The scheme is designed to help farmers meet their credit requirements for agriculture, fisheries and animal husbandry by providing them short-term loans and a credit limit to cover equipment and other expenses .
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One of the major benefits of the KCC scheme is that farmers are exempted from the high interest rates of regular loans offered by banks. Interest rates for KCC start as low as 2% and average 4%, making it more affordable for farmers to repay their loans. The repayment tenure is also flexible, depending on the harvesting period of the crop for which the loan was given.
To apply for a Kisan Credit Card, farmers must fulfill certain eligibility criteria, such as being an owner-farmer, sharecropper, tenant farmer, or a member of a self-help group or joint liability group. They must also be involved in the production of crops or allied activities such as animal husbandry, or non-agricultural activities such as fishing.
questions to ask
1. What is Kisan Credit Card (KCC) scheme?
The KCC scheme is a government initiative launched by the National Bank for Agriculture and Rural Development (NABARD) in 1998 with the objective of providing short-term formal credit to farmers.
2. What are the benefits of using Kisan Credit Card?
Benefits of using a Kisan Credit Card include low interest rates, flexible repayment options, insurance coverage, and other benefits such as savings accounts and attractive interest rates on smart cards and debit cards.
3. What are the eligibility criteria for KCC scheme?
The eligibility criteria for the KCC scheme include being an owner-farmer, sharecropper, tenant farmer, or a member of a self-help group or joint liability group.