From UPSC perspective, the following things are important :
Prelims level : Kisan Credit Card Scheme
Mains level : Easy credit facilities for Farmers
- The GoI has extended the facility of Kisan Credit Card (KCC) to fisheries and animal husbandry farmers to help them meet their working capital needs.
KCC facility for Fishermen
- The KCC facility will help fisheries and animal husbandry farmers to meet their short term credit requirements of rearing of animals, poultry birds, fish, shrimp, other aquatic organisms and capture of fish.
- Under this, for the existing KCC holders the credit limit is Rs. 3 lakh including animal husbandry and fisheries activities whereas the KCC holders for animal husbandry and fisheries have the credit limit of Rs. 2 lakh.
- It would help them to meet their working capital requirements for animal husbandry and fisheries activities.
- Under KCC facility, Interest subvention is available for animal husbandry and fisheries farmers @ 2% per annum at the time of disbursal of loan and additional interest subvention @ 3 % per annum in case of prompt repayment as Prompt Repayment Incentive.
Kisan Credit Card Scheme
- The Kisan Credit Card (KCC) scheme is a credit scheme introduced in August 1998 by Indian banks.
- This model scheme was prepared by the National Bank for Agriculture and Rural Development (NABARD) on the recommendations of RV Gupta to provide term loans and agricultural needs.
- Its objective is to meet the comprehensive credit requirements of the agriculture sector by giving financial support to farmers.
- Participating institutions include all commercial banks, Regional Rural Banks, and state co-operative banks.
- The scheme has short term credit limits for crops, and term loans.
- Kisan Credit Card (KCC) offering credit to the farmers in two types viz, 1. Cash Credit 2. Term Credit ( for allied activities such as pump sets, land development, plantation, drip irrigation).
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