Back2Basics: Kisan Credit Card (KCC) Scheme

• Launch: Started in 1998 based on the R.V. Gupta Committee’s recommendation.
• Who implements it: Managed by Commercial Banks, RRBs, Cooperative Banks, and Small Finance Banks.
• Purpose and Uses:
  • Gives quick and easy loans for crop expenses, post-harvest needs, and household costs.
  • Supports dairy, poultry, fisheries, and other allied activities.
  • Offers credit for farming-related business investments.
• Key Features:
  • Collateral-free loans up to ₹2 lakh.
  • Interest rates as low as 4% with timely repayment (under MISS).
  • Loan limit raised to ₹5 lakh in Budget 2025–26.
  • Uses a revolving credit system — farmers can borrow and repay as needed.
  • Flexible repayment is aligned with crop cycles to reduce stress.
• Additional Benefits:
  • Includes crop insurance under PM Fasal Bima Yojana (PMFBY).
  • Since 2018–19, also covers farmers in animal husbandry and fisheries.
  • Helps farmers avoid moneylenders, promoting financial inclusion.

1. Working capital for maintenance of farm assets

2. Purchase of combine harvesters, tractors and mini truck

3. Consumption requirements of farm households

4. Post-harvest expenses

5. Construction of family house and setting up of village cold storage facility

Select the correct answer using the code given below:

Options: (a) 1, 2 and 5 only (b) 1, 3 and 4 only* (c) 2, 3, 4 and 5 only (d) 1, 2, 3, 4 and 5