What is the News ?

Union Minister of Fisheries, Animal Husbandry and Dairying, Shri Parshottam Rupala chaired a National KCC Conference in Mumbai on 4th September 2023 to boost Kisan Credit Card (KCC) saturation among animal husbandry and dairy farmers.

Facts About:

Ministry: Ministry of Fisheries, Animal Husbandry and Dairying.

Historical Background: Introduced in 1998 to simplify and streamline access to timely credit support for farmers. Expanded in 2004 to include allied and non-farm activities. Extended to fisheries and animal husbandry in the Budget-2018-19.

Objectives:

• Meet short-term credit needs for cultivation.
• Cover post-harvest expenses.
• Fulfill household consumption needs.
• Implementing Agencies: Commercial Banks, Regional Rural Banks (RRBs), Small Finance Banks, Cooperatives.

Salient Features:

• Offers an ATM-enabled RuPay Card.
• Requires one-time documentation.
• Allows for cost escalation in the limit.
• Permits multiple withdrawals within the limit.
• Covers post-harvest expenses, produce marketing loans, and household consumption.
• Repayment period aligned with crop harvesting and marketing.
• Maximum short-term loan tenure: 1 year, long-term loan: 5 years.
• Interest subvention scheme of 2% for short-term crop loans up to Rs. 3 lakh.
• Additional 2% interest subvention and 3% prompt repayment incentive.
• Simple interest for prompt payments; compound interest for delays.

Benefits:

• Interest rates as low as 2.00%.
• No security required for loans up to Rs. 1.60 lakh.
• Crop insurance coverage against various calamities.
• Insurance coverage for permanent disability, death, and other risks provided to farmers.