Kisan Credit Card: Affordable Credit For Animal Husbandry And Fisheries

The Kisan Credit Card (KCC) scheme has been an important initiative to provide farmers with easy access to financial support. Since its expansion in 2019, it now caters to working capital needs in animal husbandry, fisheries, and dairying. Farmers can secure collateral-free loans of up to ₹1.6 lakh for one year. Under the Modified Interest Subvention Scheme, an interest subvention of 1.5% is offered to banks, while farmers benefit from a 3% Prompt Repayment Incentive on loans up to ₹2 lakh.

Benefits Of KCC For Farmers

KCC operates as a revolving cash credit facility, enabling farmers to withdraw and repay funds based on their needs. This flexibility supports activities like animal rearing and fish farming. Farmers also gain access to insurance options, including livestock, personal, asset, and health coverage where available. By easing access to credit, the scheme helps farmers improve productivity and financial stability.

Nationwide Outreach & Campaigns

To expand awareness and access to the KCC scheme, the government launched the AHDF KCC Campaign in 2020, in collaboration with various departments. Other efforts, such as Ghar Ghar KCC Abhiyaan and Kisan Bhagidari Prathmikta Hamari, have supported this initiative. NABARD has also contributed by producing films in multiple regional languages to promote the scheme digitally.

State-Wise Insights

As of September 30, 2024, the KCC scheme accounted for over 47 lakh operative accounts for animal husbandry, with an outstanding amount of ₹52,108.68 crore. Tamil Nadu leads in this category, with 7.13 lakh KCCs and ₹9,255.47 crore in outstanding loans. In the fisheries sector, Andhra Pradesh recorded the highest numbers, with 14,399 accounts and ₹2,647.84 crore outstanding.

All in all, the Kisan Credit Card scheme plays an important role in supporting rural communities by addressing their short-term financial needs. Through subsidised loans, flexible credit access, and targeted campaigns, the initiative is fostering financial inclusion and helping farmers in the animal husbandry and fisheries sectors of the country.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.