73
Kisan Credit Card Scheme: Macro Impact
5.1 As already indicated in para 2.4, the cumulative number of KCC issued since
inception till 31 March 2015 comes to 14.64 crore of which operative / live KCC
stands at 7.41 crore. The total crop loan issued during the 2014-15 was Rs.
6,35,412 crore which translates into a crop loan of Rs. 85,757 per live KCC
account. Since total crop area covered by KCC loan is not reported by the banks,
although the same is recorded in the application cum appraisal form of KCC
loan by the banks, it is difficult to estimate the actual area for which KCC loan
is extended. However, the following estimates are made in order to arrive at the
total benefits accrued to the farmers on account of KCC financing.
Table 5.1: Macro Estimates of benefits from KCC financing
Sl
Particulars
Estimates
1 Number of Operative/ Live KCC accounts as on 31.03.2015
7,40,94,090
2 Crop loan disbursed through KCC during 2014-15
Rs. 6,35,412 crore
3 Average crop loan disbursed per farmer during 2014-15
Rs. 85,757
4
Average crop loan disbursed per acre during 2014-15#
(Considering average size of holding in India =2.84 acres i.e. 1.15 ha)
Rs. 31923
5 Average increase in farm income per acre due to KCC
Rs. 5,463
6 Gain per acre per annum net of interest due to KCC financing (Excess of farm income of KCC
farmers over non-KCC farmers) (Pl see Table 3.10)
6 (i)
Gain net of interest burden per acre per annum–
No Subvention (i.e. 9% per annum)
Rs. 2591
6
(ii)
Gain net of interest burden per acre per annum– with interest Subvention
(i.e. 7% per annum on loan up to Rs. 3.0 lakh & 9% on above Rs 3.0 lakh)
Rs. 2974
6
(iii)
Gain net of interest burden per acre per annum– Prompt Repayment
(i.e. 4% per annum on loan up to Rs. 3.0 lakh & 9% on above Rs 3.0 lakh)
Rs. 3548
Macro Estimates:
7
Estimated agricultural cropped area covered by KCC (7.41 crore operative KCC
accounts multiplied by average size of holding 1.15 ha)
85.208 mill ha
(241.99 mill acre)
8
Estimated area eligible for Interest Subvention
(@ 84.3%- Sample data indicates
that 9.2% sample farmers with 15.7% share in land holding were sanctioned loan
above Rs. 3.0 lakh.
71.83 million ha
(204 mill acre)
9 Total increase in farm income of farmers on account of KCC financing $
Rs. 1,32,199 crore
10
Total increase in farm income ‘net of interest cost’ on account of KCC financing
10
(i)
Total increase in farm income per annum net of interest –No Subvention (i.e. 9%
per annum) on total land coved under KCC
Rs. 62,670 crore
10
(ii)
Total increase in farm income per annum net of interest – with interest Subvention
(i.e. 7% per annum on loan < Rs. 3.0 lakh & 9% on above Rs 3.0 lakh)
Rs. 71,968 crore
10
(iii)
Total increase in farm income per annum net of interest – Prompt Repayment (i.e.
4% per annum on loan up to Rs. 3.0 lakh & 9% on above Rs 3.0 lakh)
Rs. 85,858 crore
Note: (i) ** Since 2% subvention is given to banks so that they lend at 7% to the farmers, it is
assumed that banks would be lending to farmers at 9% in absence of interest subvention
scheme.
(ii) # Average loan per acre disbursed to sample farmers in the study area is Rs. 31,923 per
acre per annum.
(iv)
$ The contribution of KCC financing is calculated by taking the increase in farm income
of KCC farmers over non-KCC farmers
CHAPTER
5
