The Government of India introduced the Kisan Credit Card (KCC) scheme in 1999.According to a recent survey report, over 65 million KCCs had been issued by early 2007.
This credit, typically, covers the working capital needs of the farmers for a crop cycle. You borrow the money when you need to buy inputs such as seeds, tools, fertilizer, pesticides and labour. Once the crop is harvested and sold, the amount has to be repaid. The credit becomes available again for the next season. This helps the farmers to avoid traditional money lenders and the exorbitant interest rates charged by them.
In 2004 this scheme was expanded to cover more types of loans:
- Term loans for agriculture and allied activities.
- A reasonable component to meet consumption needs.
- Many banks also offer Personal Accident Insurance Scheme at a very nominal premium.
- Some of the banks have launched KCCs that can be used in an ATM machine.
The Swarojgar Credit Card Scheme (SCC) was introduced in 2003. The SCC aims at providing working capital and term loans to small artisans, handloom weavers, fishermen, self employed persons, rickshaw owners, other micro-entrepreneurs, self help groups (SHG), etc. Farm sector activities like fisheries, dairy, etc., can also be covered under the scheme. About half a million SCCs had been issued by Sept 2006.
You can get a Kisan Credit Card or a Swarojgar Credit Card from any of the following:
- Commercial banks
- Co-operative banks
- Regional Rural Banks (RRB)
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