The government has started a special campaign to increase the income of farmers and provide them loans at cheaper rates. The government has tried to make every farmer have KCC ie Kisan Credit Card, so that from time to time he can fulfill his financial needs for cultivation. The Central Government has issued new directions to the banks saying that they issue Kisan Credit Card (KCC) within two weeks of receiving the fully filled application of eligible farmers.
At present, 6.95 crore KCCs are underway, under which the loans for crops are given at the subsidized rate of subsidy. KCC has also been expanded for farmers involved in animal husbandry and fishery activities. Additional Secretary Dolly Chakraborty in the Ministry of Agriculture said in a letter to the banks, “There are still a large number of farmers who do not have access to institutional credit, because they have not been issued KCC or KCC issued earlier / default – Apart from the executed assets, were inactive due to various reasons.
The government therefore decided to start a campaign to saturate the farmers for financial inclusion under the KCC. “The government has said that since the loans obtained from KCC will be eligible for subsidy interest rates, the details of the applicant’s Aadhaar card number Will also be placed.
Instant Account will be Opened
It has been stated in the instructions by the government that in order to collect applications for KCC, camp in bank villages. Focusing on issuing KCC in a timely manner from the branch where the farmer already has an account. If the eligible farmer does not have any bank account, he will be opened immediately within the block, in any nearby branch of his choice.
Loans Get Low Interest Rate
Typically, interest rate on agriculture loans is 9%. But the government is giving two percent interest subsidy to the farmers to get short-term farm loans up to Rs 3 lakh at an effective rate of 7 percent per annum. Farmers are being given an additional incentive of 3% for the repayment of loans immediately within the due date, with effective interest rate being 4%.