Kisan Credit Card (KCC) in India: Empowering Farmers with Easy Credit Access

This presentation explores the Kisan Credit Card (KCC) scheme, its role in providing affordable credit to farmers, reducing dependency on informal loans, improving agricultural productivity, and its impact on rural financial inclusion and economic growth.

1. Kisan Credit Card (KCC) in
India

The Kisan Credit Card (KCC) scheme launched in 1998. It aims to provide
timely and adequate credit to Indian farmers. Key objectives include meeting
short-term credit requirements. This is done for cultivation of crops, post-
harvest expenses, and other agricultural needs. Implementing agencies include
NABARD, RBI, and various banks.

2. KCC: Objectives and Features

Short-Term Credit

The primary goal is short-term credit
for crop cultivation. It covers allied
activities like animal husbandry.

Subsidized Interest

Interest rates are subsidized, often
around 7%. Prompt repayment can
reduce it to 4%.

Flexible Repayment

Repayment schedules align with
harvesting seasons. Loans up to 71.6
lakh are often collateral-free.

3. Recent Updates and
Initiatives

4 Animal Husbandry 2 Saturation Drives
Coverage Government campaigns
Extended KCC to animal aimed to saturate KCC
husbandry and fisheries. coverage. Focused drives
This aims to boost the rural were conducted in 2020 and
economy. 2021.

3 Integration with PM-KISAN

Linked KCC with PM-KISAN for easier access and wider coverage.

4. Performance Data and Key L |

Statistics
7.94Cr %8.74LCr
Total KCCs Issued Credit Disbursed
Issued as of December 2023. Disbursed in FY23.

1.1 L F

Average Loan Size

Approximate average loan size.

5. Challenges and Issues

1 Low Awareness
Lack of awareness among small farmers is an issue.
Access Barriers

2 Complex procedures cause delays in the application
process.

3 Regional Disparities

Uneven distribution of KCC benefits across states exists.

6. Government Measures for

Efficiency

Simplified Awareness
Application Campaigns
Simplified KCC Awareness programs
application forms are and training camps
introduced for are being sponsored.

farmers.

0

Technology
Integration
Technology tracks
loans and

disbursement,
increasing efficiency.

7. Case Studies and Success

Stories

Maharashtra

Farmer increases yield by 30%
using KCC funds for irrigation.

Uttar Pradesh

Andhra Pradesh

Dairy farmer improves milk
production with KCC-funded
livestock.

Small farmer diversifies into horticulture, doubling income.

8. Conclusion: Future of KCC

Continuous Improvement

Needs continued improvement in accessibility.

Expansion

Expansion to tenant farmers and landless laborers.

Technology Focus

Future includes tech integration and climate resilience.