Agricultural Loan for Rural Growth
An Agricultural Loan including the Kisan Credit Card (KCC), is designed specifically to support farmers and agribusinesses. It provides timely credit to meet expenses related to crop production, equipment purchase, irrigation, storage, and other farming needs. These loans often come with subsidized interest rates and flexible repayment schedules tailored to the crop cycle. The KCC scheme allows farmers to withdraw money as needed, much like a credit card, making it a flexible solution for managing seasonal agricultural expenses. It also includes personal accident insurance coverage ensuring farmers’ financial security in unforeseen circumstances. Borrowers can repay the loan after the harvest, which aligns with their income flow. This reduces pressure on farmers and promotes better loan servicing. Additionally, KCCs simplify the borrowing process with minimal paperwork and faster disbursal.
What is an agricultural loan?
It’s a loan provided to farmers for crop production, equipment, storage, irrigation, and other agricultural needs.
What is a Kisan Credit Card (KCC)?
KCC is a type of agricultural loan offering flexible credit access to farmers with features like easy withdrawals and repayment aligned with the crop cycle.
Who is eligible for a KCC or agricultural loan?
Farmers, tenant farmers, sharecroppers, and self-help groups engaged in agriculture or allied activities are eligible.
What are the interest rates for KCC loans?
Interest rates typically range from 7% to 9% but can go as low as 4% after government subsidies.
Are there any additional benefits?
Yes, KCC holders often get personal accident insurance, crop insurance, and interest subvention benefits for timely repayment.
