About

• It is a scheme which provides adequate and timely credit to farmers for their agricultural operations.
• The Government of India provides interest subvention of 2% and Prompt Repayment Incentive of 3% to the farmers, thus making the credit available at a very subsidized rate of 4% per annum.
• The scheme was extended in 2004 to include investment credit for farmers allied and non-farm activities.
  • In 2012, it was revisited by a working group led by Shri T. M. Bhasin, CMD of Indian Bank, to simplify the process and enable the issuance of Electronic Kisan Credit Cards.
• In 2019, KCC scheme was extended to cover working capital requirement of animal husbandry, dairying and fisheries.
  • Banks can provide collateral free loans up to Rs.1.60 lakh.
• The scheme provides broad guidelines to banks for operationalizing the KCC scheme.
• Implementing banks will have the discretion to adopt the same to suit institution/location-specific requirements.

Objectives / Purpose

• It aims at providing adequate and timely credit support from the banking system under a single window with the flexible and simplified procedures to the farmers for their cultivation and other needs as given below:
  • To meet the short-term credit requirements for the cultivation of crops
  • Post-harvest expenses
  • Produce marketing loan
  • Consumption requirements of farmer household
  • Working capital for maintenance of farm assets and activities allied to agriculture;
  • Investment credit requirement for agriculture and allied activities

KCC Delivery Channels