Kissan Credit Card is a scheme introduced by National Bank for Agriculture and Rural Development (NABARD) in the year 1998 as per the recommendation of R V Gupta Committee. The scheme was implemented to provide adequate credit to farmers to meet their production credit requirements.
Under KCC two types of credit are provided- Cash credit and Term loan. The aspects like consumption expenditure, farm assets maintenance, term loan for agriculture and allied assets, insurance and Atal Pension Yojana are being covered under the scheme. The validity of the loan under KCC Scheme is 5 years with an option to extend up-to 3 more years under specific conditions.
As per the statistics published by NABARD the average gain per acre on account of KCC loan is Rs 5463. According to the Reserve Bank of India (RBI) there are more than 2 crore operating KCC in India. Under this scheme farmers between the age of 18-75 are eligible to avail the credit. Farmer can be individual or group farmers, including the tenant farmers.
Through KCC the documentation process for availing agriculture credit has been simplified. The farmers has to just fill the application form and submit identity proof and address proof to the financial institution. Based on the cropping pattern and Scale of finance loan will be provided to the farmers. By the introduction of KCC the finnacial institutions are able to provide timely and adequate financial assistance to farmers in a hassle free manner.