Kisan Credit Card scheme: Rs 1.35 lakh crore credit sanctioned achieved

Concentrated efforts by the bank and other stakeholders for concessional credit to the farmers led to the achievement of the credit limit of Rs 1.35 lakh crore sanctioned under a special saturation drive under the Kisan Credit Card (KCC) scheme.

As part of the Atmanirbhar Bharat package, the government had announced to cover 2.5 crore farmers under the KCC scheme with a credit boost of Rs 2 lakh crore through a special saturation drive.

The KCC scheme was introduced in the year 1998 with the objectives of providing adequate and timely credit to the farmers for their agricultural operation. The Government of India provides interest subvention of 2% and prompt repayment incentive of 3% to the farmers, thus making the credit available at a very subsidised rate of 4% per annum. The government has taken major farmer-friendly steps by extending the benefits of KCC with interest subvention in 2019 to Animal Husbandry including Dairy and Fisheries farmers for their working capital requirement and raising the existing limit of collateral-free agriculture loan from Rs 1 lakh to Rs 1.6 lakh.

“While ensuring convenient and cost-effective credit delivery to farmers, the ongoing campaign will also be instrumental in driving the rural economy and further accelerating agricultural production and allied activities, besides enhancing the income level of farmers. This will also go a long way in fulfilling the objective of food security for our country,” the finance ministry said in a statement.