Are you facing difficulty to meet your urgent domestic expenses amid covid-19 lockdown? Then your worries end here. In this article, we will inform you about one of the wonderful facts about the Kisan Credit Card (KCC). The Kisan Credit Card scheme does not only provide help to farmers financially but a part of it can also be used to meet their household needs.
How Kisan Credit Card Scheme is Helping Farmers?
KCC can actually help you in meeting some of your urgent domestic expenses at your time of need. Though, the KCC scheme which provides credit to farmers for small loans is primarily meant for meeting their financial requirements related to crops. But, its some part can be used by them to meet domestic needs.
How KCC can help Farmers in domestic needs?
One can utilize the 10 percent of the short term limit under the KCC scheme for household consumption purposes. The Reserve Bank of India or RBI has put information on its website with regards to this under its Financial Education (for Farmers) section.
The motive of Kisan Credit Card scheme is to enable farmers to meet their crop loan requirements. The RBI, advises farmers to not utilise large amounts for meeting your household expenses as this could limit a farmer's ability to generate income & repay the loan. Timely payments of KCC loans enable farmers to get more benefits on future loans.
RBI Advisory for farmers under KCC Scheme:
It is to be noted that recently, the Reserve Bank of India has issued an advisory. Under it, it has asked banks to extend the benefit of interest subvention (IS) of 2% and Prompt Repayment Incentive (PRI) of 3% for short term crop loans up to Rs 3 lakh to farmers whose accounts have become due or shall become due between March 1, 2020 & May 31, 2020.
The Kisan Credit Card scheme was started in 1998 with the aim to provide short-term formal credit to farmers. Under KCC scheme, owner cultivators and tenant farmers can avail loans for meeting their agricultural needs that too with attractive rates of interest.
