PRESENTATION ON

KISAN CREDIT CARD

PRESENTED BY:-SHASHANK JAIN,RUPESH JAINNASIR JALAL SITESH PRATAP SINGH

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It was started by the Government of India, RBI, and NABARD

In year 1998-99

Flexible and simplified procedure, adopting whole farm approach

Provide aff ordable credit for farmers in India.

Including the short-term credit, medium term and long term credit

INTRODUCTION

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Exploitations of farmers by local money lenders

To remove local money lenders (Saahukars, Mahajans )

Banks does not gives loans without any security or guarantee

NEED OF KCC

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Banks takes too much time to grant loans for agriculture.

Too much documentation is required for agriculture loans

High interest rates on agricultural loans

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Banks does not agree to give loans without any security or guarantee.

No company for crop insurance

Local money lenders oppose on local level

Government also required funds for providing subsidy on credit

To create awareness & educate them about KCC

CHALLENGES FACED

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Govt. convinced banks to give loans up to 1 lac without any guarantee

Government convinced an insurance company to provide crop insurance on low cost

Govt. also asked banks to provide farmers 15% extra loan to farmer for their daily needs

HOW THEY OVERCOME - CHALLENGES

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Special package for agricultural reforms

Programmes likes kisan credit card mela , local bodies like panchyats used for awareness & education

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Bhu- Adhikar Pustika

Sarpanch Praman Patra

Voter I-card

Residential Proof

8 Photographs

Khasra,Khatauni(latest 5yrs.)

land Map(Naksa).

DOCUMENTS REQUIRED

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Government gives 50% subsidy on interest for one year.

Charges only 3% interest rate on loans for 6 months.

Provide health insurance up to 1 lakhs for farmers for three years in just Rs. 45 in which banks pay Rs. 30 on behalf of card holder.

OFFERING BY KCC

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Crop insurance only on 3 % of total loan

A local committee are formed who decided the per hectare amount of loan

Local committee consist of offi cials form agriculture department , various banks , local government bodies.

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No need to apply for a loan for every crop

Assured availability of credit at any time

Helps buy seeds, fertilizers at farmer’s convenience and choice

Helps buy on cash-avail discount from dealers

ADVANTAGES OF KCC

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Credit facility for 3 years – no need for seasonal appraisal

Maximum credit limit based on agriculture income

Any number of withdrawals subject to credit limit

Repayment only after harvest

CONT…

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