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Banks sanction Rs 1.35 lakh crore loans to 1.5 crore KCC card holder farmers

20 Oct 2020 Evaluate

The Finance Ministry has said that banks have covered 1.5 crore farmers under the Kisan Credit Card (KCC) scheme to sanction credit limit of Rs 1.35 lakh crore to help them meet financial requirements during the coronavirus disease (covid-19) pandemic. It noted that as part of the Rs 20.97 lakh crore Aatma Nirbhar Bharat Package, the government in May had announced the provision of concessional credit of Rs 2 lakh crore which is likely to benefit Rs 2.5 crore farmers, including fishermen and dairy farmers.

The ministry stated that as a result of concerted and sustained efforts by the banks and other stakeholders in the direction of providing access to concessional credit by the farmers, including fishermen and dairy farmers, a major milestone target of covering more than 1.5 crore farmers under KCC, with sanctioned credit limit of Rs.1.35 lakh crore has been achieved. While ensuring convenient and cost-effective credit delivery to farmers, it said, the ongoing campaign will also be instrumental in driving the rural economy and further accelerating agricultural production and allied activities, besides enhancing the income level of farmers. It also said this will also go a long way in fulfilling the objective of food security for the country.

The KCC Scheme was introduced in the year 1998 with the objectives of providing adequate and timely credit to farmers for their agricultural operation. The government provides interest subvention of 2 percent and prompt repayment incentive of 3 percent to farmers, thus making the credit available at a very subsidized rate of 4 per cent per annum.

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