Image Source : FILE PHOTO One of the key benefits of the KCC scheme is that farmers are exempt from the high interest rates of regular loans offered by banks
The Kisan Credit Card (KCC) scheme is a government initiative launched in 1998 by the National Bank for Agriculture and Rural Development (NABARD) that aims to provide 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 with short-term loans and a credit limit to purchase equipment and cover other expenses.
ALSO READ: Budget 2023: A look at India’s longest-serving finance ministers
One of the key benefits of the KCC scheme is that farmers are exempt from the high interest rates of regular loans offered by banks. The interest rate for KCC starts as low as 2% and averages at 4%, which makes it more affordable for farmers to repay their loans. The repayment period is also flexible, depending on the harvesting period of the crop for which the loan was given.
ALSO READ: Union Budget 2023: Govt likely to announce PLI scheme for more sectors to cover high-employment fields
To apply for a Kisan Credit Card, farmers must meet certain eligibility criteria, such as being an owner-cultivator, 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-farm activities like fishing.
FAQs
1. What is the Kisan Credit Card (KCC) scheme?
The KCC scheme is a government initiative launched in 1998 by the National Bank for Agriculture and Rural Development (NABARD) that aims to provide short-term formal credit to farmers.
2. What are the benefits of using a Kisan Credit Card?
The benefits of using a Kisan Credit Card include low-interest rates, flexible repayment options, insurance coverage, and other benefits like attractive interest rate on savings account and smart card and debit card
3. What are the eligibility criteria for the KCC scheme?
The eligibility criteria for the KCC scheme include being an owner-cultivator, sharecropper, tenant farmer, or a member of a self-help group or joint liability group.
Latest Business News
Source link
