• Government decided to launch a campaign to saturate farmers for financial inclusion under Kisan Credit Cards (KCC).
  • Agriculture Ministry in a statement said, the campaign will be launched through the Financial Institutions in collaboration with the State Governments.
  • The Department of Financial Services has already issued directives to the Financial Institutions in this regard.
  • The Ministry said, there are around seven crore active KCCs and issuing of KCCs in large numbers have helped increasing the agriculture credit.
  • It has contributed significantly in not only fulfilling the objective of food security but also increasing the farmer’s income.

What is Kisan credit card? 

  • Kisan Credit Card (KCC) is a credit scheme prevalent in India, which was introduced in August 1998 all over the country. The prime motive of this credit scheme is to enable farmers in having quick and timely access to affordable credit.
  • The plan was launched by the NABARD and Reserve Bank of India. The scheme aims to reduce farmers’ dependency on informal banks for credit, which is often lucrative yet very expensive. The card is offered by cooperative banks, regional rural banks, and public sector banks.


Features of Kisan Credit Card:

  • The aspect of this unique facility also includes term loans for agriculture and other activities and is a determining factor for consumption loan. The scheme currently offers:
  • Insurance coverage for Kisan Credit Cardholders
  • Credit to meet the financial requirements of farmers, primarily related to crop production and other contingencies
  • Coverage for crop loans given under KCC scheme for some specific crops only
  • Protection is provided against loss of crops due to pest attacks, natural calamities, etc.,
  • In some cases, collateral security is to be provided. If the loan amount is above Rs. 100000/-, then the cardholder has to offer his land as mortgage and pledge the crops raised on it.
Share Socially