Kisan Credit Card (KCC) is a credit scheme prevalent in India, which was introduced in August 1998 all over the country.
- The prime motive of this credit scheme is to enable farmers in having quick and timely access to affordable credit.
- The plan was launched by the NABARD and Reserve Bank of India.
- The scheme aims to reduce farmers’ dependency on informal banks for credit, which is often lucrative yet very expensive.
- The card is offered by cooperative banks, regional rural banks and public sector banks.
Features of Kisan Credit Card:
- Insurance coverage for Kisan Credit Cardholders.
- Credit to meet the financial requirements of farmers, primarily related to crop production and other contingencies.
- Coverage for crop loans given under KCC scheme for some specific crops only.
- Protection is provided against loss of crops due to pest attacks, natural calamities, etc
- In some cases, collateral security is to be provided.
- Extending the benefits of KCC with interest subvention to the farmers engaged in activities related to Animal Husbandry and Fisheries.
Benefits of KCC:
- Financial inclusion
- Increasing the agriculture credit
- Food security for our country
- Increasing the farmers income