Amid the protest and controversy against central government's new farm legislation, farmers are demanding debt waiver. However, it is a fact that poor farmers cannot do farming without taking debt or loan from money lenders/banks. They often get confused while deciding from whom they should lend money and finally end up in huge debt.
Government sets target to distribute Rs 15 lakh crore Agricultural Loans:
According to recent reports, the Modi government has set a target to distribute agricultural loans of Rs 15 lakh crore in the country by March 2021.
However, at present 58 percent of the farmers in the country are indebted. The Kisan Credit Card scheme has been linked to the Pradhan Mantri Kisan Samman Nidhi Yojana (PM Kisan Samman Nidhi Scheme) for the convenience of farmers taking loans.
Due to this, it has become very easy to take loans for farming. If you can deposit money on time, then take a loan from the government. Because under this, loans up to Rs 3 lakh are available only at 7 percent interest. If you return the money on time, then there is a discount of 3 percent. In this way, honest farmers are getting money at 4% interest only.
Banks will not be able to ignore KCC issue:
Under the PM Kisan Scheme, a record of the land of 11 crore farmers of the country and their biometric is with the Central Government. In this case, both schemes have been linked. Due to which, now the bank officials will not be able to ignore the applicant as before. At present, there are about 8 crore farmers credit card holders in the country. The goal of the government is to get kisan credit card to all the beneficiaries of PM Kisan Scheme.
Why and where do farmers take most loan from moneylenders?
According to a report presented in the Lok Sabha, every farmer in the country has an average debt of Rs 47,000. In which so much loan has been taken from the moneylenders that it comes to an average of 12,130 rupees per farmer. We have made such a system in which about 58 percent of the Annadata are borrowers. According to NSSO, Andhra Pradesh has the highest average loan of Rs 61,032 per farmer from moneylenders. Second place is Telangana with an average of Rs 56,362 and in third place is Rajasthan with Rs 30,921.
By taking loans from moneylenders, they get caught in such a vicious cycle that everything is sold and they are forced to commit suicide in case they do not return the money. While KCC can make their life easier. In 1998, the government started the Kisan Credit Card Scheme to make it easier to take loans.
According to Union Minister of State, Agriculture, Kailash Chaudhary, earlier the process of getting loan under KCC was difficult. That is why KCC has been linked to PM Kisan Scheme. KCC form has been made available on the website of PM Kisan Scheme. Therefore, banks have been asked to take only three documents and issue a loan based on that.
Documents required for KCC:
Whether the applicant is a farmer or not, his revenue record will be seen. Aadhaar, PAN, photo will be taken for his identity and thirdly his affidavit will be taken that the loan of the applicant is not outstanding in any bank. The government has asked the banking association to expedite the work of making KCC. On the advice of the government, banks have abolished its processing fees. Whereas earlier it cost from 2 to 5 thousand rupees to build KCC.
Who can avail KCC?
Now KCC is not limited to farming only, animal husbandry and fisheries will also be able to get a loan up to 2 lakh rupees under this. Any person connected with farming, fisheries and animal husbandry, even if he cultivates on someone else's land, can take advantage of it. The minimum age should be 18 years and maximum 75 years. If the farmer is over 60 years of age, then a co-applicant will also be employed. Whose age is less than 60. After filling the farmer's form, the bank employee will see if you are eligible for it.
