Friday, February 20, 2015

Kisan Credit Card - KCC

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Kisan Credit Card (KCC)
KCC is a Credit Card (exclusively) for the farmers of India. It allows farmers to have cash credit (CC) facility without visiting bank repeatedly to ask for bank loans for agricultural activities.

KCC scheme was announced in Budget speech of Mr. Yashwant Sinha (FM in 1998-99) and introduced in 1998 by Government of India, RBI and NABARDIt is to be implemented by Commercial banksRRBs and Co-operatives.

Key Benefits -

  • It made the credit facility process much simpler for the farmers, who are generally illiterate or poorly educated.
  • Earlier farmers needed to apply for loan facility every year, but KCC removed the redundant process, by providing hassle-free and on-time credit facility.
  • Repayment is allowed after the harvest period. This made it easier for the farmers, because they got the time to sell their produce to the market, and then repay the debt of the bank.
  • As KCC is a credit cardwithdrawal of funds became much easier (e.g., from ATMs)

Eligibility -

Activities covered under KCC -
  • to meet the short-term requirements for cultivation of crops
  • post harvest expenses
  • produce marketing loan
  • consumption requirements of farmer households
  • working capital for maintenance of farm assets and agriculture-allied activities, like dairy animals, inland fishery, etc.
  • investment credit requirement for agriculture and allied activities, like pump sets, sprayers, dairy animals, etc.

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