The Kisan Credit Card scheme has played a crucial role in ensuring that farmers in India have timely access to affordable credit for agricultural and allied activities. Over the years, the scheme has undergone several modifications to enhance credit penetration in the agriculture sector. It is a banking product designed to provide farmers with short-term and affordable credit to meet their agricultural needs. The phenomenal growth in the operative KCC loan amount reaching ₹10.05 lakh crore by December 2024.
This indicates significant increase in quantum of affordable working capital loans provided to the farmers for agriculture and allied activities. To further ease access to credit, the government provides an interest subvention of 1.5% under the Modified Interest Subvention Scheme (MISS), making short-term agricultural loans available at an effective interest rate of 4% for farmers. Additionally, loans up to Rs 2 lakh are provided on a collateral-free basis, ensuring hassle-free access to credit for small and marginal farmers.
Presentation -Dibyabharati Nayak