PRESENTATION ON KISAN CREDIT CARD

PRESENTED BY:SHASHANK JAIN,RUPESH JAIN NASIR JALAL SITESH PRATAP SINGH

INTRODUCTION
It was started by the Government of India, RBI, and NABARD
In year 1998-99 Flexible and simplified procedure, adopting whole farm approach

Provide affordable credit for farmers in India .

Including the short-term credit, medium term and long term credit
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NEED OF KCC

Exploitations of farmers by local

money lenders To remove local money lenders (Saahukars, Mahajans )

Banks does not gives loans without any security or guarantee

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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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CHALLENGES FACED
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 subsidy on credit required funds for providing

To create awareness & educate them about KCC

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HOW THEY OVERCOME - CHALLENGES

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
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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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DOCUMENTS REQUIRED

Bhu- Adhikar Pustika Sarpanch Praman Patra Voter I-card Residential Proof 8 Photographs Khasra,Khatauni(latest 5yrs.) land Map(Naksa).
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OFFERING BY KCC

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.
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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 officials form agriculture department , various banks , local government bodies.

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ADVANTAGES OF KCC

No need to apply for a loan for every crop

Assured availability of credit at any time Helps buy seeds, fertilizers at farmers convenience and choice Helps buy on cash-avail discount from dealers
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CONT

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
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