Government covers 1.5 crore of farmers under KCC, with sanctioned credit limit of ₹ 1.35-lakh cr
India has taken a big step forward by covering more than 1.5 crore from farmers under the Kisan Credit Cards (KCC) program and granted them an overall credit limit of ₹ 1.35 lakh crore.
It may be recalled that as part of the Atmanirbhar Bharat package, the government announced its intention to cover 2.5 crore of farmers under the KCC program with a credit increase of ₹ 2 lakh crore through a campaign special saturation.
“Due to the concerted and sustained efforts of banks and other stakeholders in the direction of providing access to concessional credit by farmers, including fishermen and dairy farmers, a major target of covering over 1.5 crore of farmers under KCC, with sanctioned credit limit of 1.35 lakh crore has been reached, ”an official statement said.
Interest and possibility of repayment
The KCC program was introduced in 1998 with the aim of providing adequate and timely credit to farmers for their farming operations. The central government grants a 2 percent interest subsidy and a 3 percent early repayment incentive to farmers, thus making credit available at a heavily subsidized rate of 4 percent per annum.
The government had taken important steps in favor of farmers by extending the benefits of KCC with an interest subsidy in 2019 to livestock, including dairy and fish producers for their working capital needs and increasing the existing limit of the unsecured agricultural loan of 1 lakh to ₹ 1.60 lakh.
“While ensuring convenient and profitable credit provision to farmers, the current campaign will also be instrumental in stimulating the rural economy and further accelerating agricultural production and related activities, in addition to improving the income level of farmers. This will also greatly contribute to the achievement of the objective of food security for our country, ”the statement added.