The government believes that this campaign to provide loans at a cheap interest rate will not only increase the income of farmers but will also strengthen the rural economy.
Government of India provides two percent subsidy on interest to farmers under Kisan Credit Card. The KCC loan limit given without any guarantee has been increased from 1 lakh to 1.60 lakh rupees.
There is good news for farmers. Banks have added 1.5 crore farmers to the Kisan Credit Card Scheme (KCC). A concessional loan of Rs 1.35 lakh crore has also been approved for farmers in the midst of Corona crisis. This information was given by the Ministry of Finance on Monday.
Financial assistance for farmers in Corona crisis
According to the Finance Ministry, during the epidemic, the government had talked about adding 2.5 crore farmers under KCC to the Self-Reliant India package. The reason for this is to help farmers facing economic difficulties to meet their financial needs. Under this, there was also talk of giving loan assistance of two lakh crore rupees to the economy.
Farmers credit card benefits
The ministry has said in its official statement that, due to continuous efforts in the right direction by banks and other concerned parties, work was done to provide loans at cheap interest rate. As a result of this, 1.5 crore farmers including fish farmers, cattle rearers have been covered under KCC, which is a major achievement. According to the statement, the total spending limit for all Kisan Credit Cards issued has reached the level of Rs 1.35 lakh crore.
Big steps in the interest of farmers
The Government of India provides two percent subsidy on interest to farmers under the Kisan Credit Card. Apart from this, incentive discount of three percent is also given to the farmers who repay the loan on time. In this way, the annual interest rate on KCC comes to four percent. Taking a major step in the interest of the farmers, the government has ensured that in 2019, including the provision of subsidy in the interest rate at the KCC, the system of giving its benefits to livestock and fishermen including dairy business.
Increase in KCC loan limit
Also, the limit of KCC loan given without any guarantee has been increased from Rs 1 lakh to Rs 1.60 lakh. The government believes that this campaign to provide loans at a cheap interest rate will not only increase the income of farmers but will also strengthen the rural economy. Apart from this, production will also increase in agriculture and allied sectors.
It will also have a special role in ensuring food security for the country. The Kisan Credit Scheme was launched in 1998. The aim was to provide timely loans to farmers for agricultural activities without any hindrance.