KISAN CREDIT CARD (Syllabus: GS Paper 2 – Government Schemes)

Context: The Union Minister of Fisheries, Animal Husbandry and Dairying, chaired a National KCC Conference recently, to boost Kisan Credit Card (KCC) saturation among animal husbandry and dairy farmers.

Kisan Credit Card (KCC)

• Nodal Ministry: Ministry of Fisheries, Animal Husbandry and Dairying.
• Origin: It was introduced in 1998 based on a model scheme prepared by the National Bank for Agriculture and Rural Development (NABARD).
• Implementing Agencies: Commercial Banks, Regional Rural Banks (RRBs), Small Finance Banks & Cooperatives
• Objectives: To meet the short-term credit requirement for cultivation.

oTo manage post-harvest expenses.

oTo meet the consumption requirement of the farmer’s household.

Key Features

• KCC offers several benefits, including an ATM-enabled RuPay Card, simplified documentation, automatic limit escalation, and unrestricted withdrawals within the set limit.
• Expansion of Eligibility: In 2004, the eligibility criteria for the program were broadened to encompass farmers' requirements for investment credit, covering both agricultural and non-farm activities.
• Diverse Financial Support: KCC caters to various financial needs of farmers, such as post-harvest expenses, loans for selling produce, and meeting household consumption requirements.
• Flexible Repayment Schedule: The repayment period under KCC is determined based on the crop's harvesting and marketing duration, offering flexibility to farmers.
• Loan Duration: KCC provides short-term agriculture loans with a maximum tenure of 1 year and long-term loans with a duration of up to 5 years.