Important for UPSC Prelims: Agriculture | Government Schemes
About Kisan Credit Card (KCC)
- Kisan Credit Card (KCC) is a Government scheme launched in 1998 to provide timely, affordable, and hassle-free institutional credit to farmers.
- The scheme is implemented through Commercial Banks, Regional Rural Banks (RRBs), and Cooperative Banks.
Key Features
- Revolving credit facility for up to 5 years.
- RuPay-enabled KCC for digital transactions.
- Covers crop cultivation, post-harvest expenses, and allied activities.
- Simplified application through PM-KISAN data and Kisan Rin Portal.
Objectives
- Ensure timely availability of agricultural credit.
- Reduce farmers’ dependence on informal moneylenders.
- Promote financial inclusion and agricultural productivity.
- Support allied activities such as animal husbandry and fisheries.
Eligible Beneficiaries
- Owner-cultivator farmers
- Tenant farmers, oral lessees and sharecroppers
- Joint borrowers
- Self-Help Groups (SHGs)
- Joint Liability Groups (JLGs)
| Modified Interest Subvention Scheme (MISS) Introduced in 2006-07 to make KCC loans more affordable. Short-term crop loans up to ₹3 lakh are available at 7% interest. Farmers receive 3% interest subvention for timely repayment, reducing the effective interest rate to 4%. |
Conclusion
- KCC is the flagship institutional credit scheme that provides timely and affordable finance to farmers, enhancing agricultural productivity and financial security.
| This concept has been mentioned in the following article: Maharashtra Becomes the First State to Qualify for the Second Installment under Rashtriya Krishi Vikas Yojana (RKVY) |