202
Over a period, the KCC scheme has been further streamlined. Until
2004, only crop loans for production purposes were allowed under the
scheme. Since 2004, term loans up to
`
50,000 have been added to the base
amount. Entire production needs for a year
plus
a portion of the base amount
to meet the costs of ancillary activities related to crop production and working
capital for non-farm activities are covered. Also, crop loans disbursed under
the KCC for notified crops are covered under the National Crop Insurance
Kisan Credit Card Scheme
Kisan Credit Card Scheme was introduced in 1998-1999 to facilitate access to
credit from Commercial Banks and Regional Rural Banks. The salient features of
the Scheme are as given below:
(a) Farmers eligible for production credit of
`
5000 or more are eligible for issue of
Kisan Credit Card.
(b) Eligible farmers to be provided with a Kisan Card and pass book or card-cum-
pass book.
(c) Provision of revolving cash credit facility involving any number of drawals and
repayments within the limit.
(d) Entire production credit needs for full year plus ancillary activities related to
crop production considered while fixing limit. In due course, all activities and
non-farm credit needs may also be covered.
(e) Limit to be fixed on the basis of operational land holding, cropping pattern and
scale of finance.
(f) Sub-limits may be fixed at discretion of banks.
(g) Card valid for 3 years subject to annual review.
(h) Each drawal to be repaid within 12 months.
(i) Conversion/reschedulement of loans also permissible in case of damage to
crops due to natural calamities.
(j) As incentive for good performance, credit limits could be enhanced to take care
of increase in costs, change in cropping pattern etc.
(k) Security, margin, rate of interest as per RBI norms.
(l) Operations may be through issuing branch or at the discretion of bank, through
other designated branches.
(m) Withdrawals through slips/cheques accompanied by card and passbook.
Source:
Economic Survey 1999-2000, Government of India, p.142
