Here comes a good news for farmers of the country. Now they can get loan worth Rs. 1.60 lakh without any guarantee on Kisan Credit Card (KCC) for cultivation of various crops. It is important to mention that earlier, farmers used to get loan of just Rs. 1 lakh.
Small and marginal farmers of India are provided crop loans through Kisan Credit Card at a low interest rate. The availability of agricultural credit is not only helpful in increasing the productivity of crops, but also in strengthening their economic status and in providing food security and social security.
According to Kailash Chaudhary, Minister of State for Agriculture and Farmers Welfare, this loan will be available to farmers through Kisan Credit Card (KCC). He said that the government is giving loans without any guarantee so that farmers do not have to borrow funds from the moneylenders at high interest rates. Chaudhary further said that farmers will get loans at the interest rate of 4% up to a limit of Rs 3 lakh on timely payment.
Instructions given to banks regarding KCC
The government has asked all the banks to issue loans under Kisan Credit Card within 15 days of submission of the application for loan. All the processing charges of banks on KCC have also been removed for the farmers. Farmers involved in animal husbandry and fisheries have also been given the facility to take loans up to Rs. 2 lakh through KCC.
Objective of KCC is to double farmers income
At present, more than seven crore farmers in the country have Kisan Credit Card (KCC). Whereas according to the government, there are about 14.5 crore farmer families. In such a situation, banks have been asked to provide Kisan Credit Cards to the farmers in a more easy and convenient way. Modi government is working hard to double the income of farmers by 2022. And for this, it is providing cheap loans to farmers.
