Kisan Credit Card was introduced by the government so that the farmers can avail loans at lower interest rates for their agricultural needs. It's an initiative by the Indian Government to make sure that farmers of the our country have access to credit at a reasonable rate.
KCC Loan: What will be the Benefit & to Whom?
Earlier KCC was for the farmers doing farming only, but now the government has brought up this scope to those working in animal husbandry and dairy. The government is going to provide KCC to cattle farmers so that they can also avail the benefits of KCC. Atul Chaturvedi, Animal Husbandry Secretary mentioned that banks are hesitating to provide KCC to the livestock & dairy farmers, and he said that he has spoken to his counterpart in the Ministry of Finance in this regard. And KCC is now issued to these category farmers too.
Cheapest Loan through KCC
The interest rate of loans up to 3 lakh rupees taken through KCC is 9%, and the government gives 2% subsidy on it. So, it falls to 7%. But if returned on time, farmers get 3% more discount, so the rate is 4% only.
Agricultural Loan Target increased to 16.5 Lakh Crore for the Year 2021-22
The Central government has increased the agricultural loan target to Rs. 16.5 lakh crore for the financial year 2021-22, so that more farmers can be provided loans. Earlier, in the FY 2020-21 it was Rs. 15 lakh crore.
(Note: Till the year 2018, KCC was issued to the farmers growing crops only. But thereafter, it has been extended to fisheries, livestock and dairy farmers too).
Crop Insurance from KCC
With the help of Kisan Credit Card, farmers can also get their crop insured, for whatever the reason crop gets spoiled, they will be compensated. KCC is useful even if the crop gets submerged in flood or destroyed due to drought.
About Kisan Credit Card 2021 Scheme
All the farmers can avail the benefits of Kisan Credit Card Scheme. Following are the benefits-
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Farmers can get the benefit of Pradhan Mantri Kisan Samman Nidhi Yojana under this scheme.
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Farmers can get a loan of Rs. 1.60 lakh by the Central government through KCC.
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This scheme will be beneficial for 14 Crore farmers of the country.
