Kisan Credit Card (KCC) has emerged as an innovative credit delivery mechanism to meet the production credit requirement of the farmers in a timely and hassle free manner. The scheme has received wide acceptability amongst bankers and farmers.
The scheme is primarily intended to provide short term credit to the farmers of the command area of Bank in the form of Cash Credit for raising different crops. Simultaneously KCC is also issued to farmers for carrying out various activities allied to agriculture to augment their farm income and for the purpose of acquiring different farm equipment. In other words KCC scheme takes care of both the production credit and investment credit needs of Bank’s farmer clients.
The objective of the scheme is to provide adequate and timely credit to farmers for:
- Raising different crops.
- Post harvest expenses.
- Expenses for marketing of Agricultural produces.
- Consumption needs of farmer household.
- Working capital for maintenance of farm equipment.
- Carrying out activities allied to agriculture.
- Purchase of agricultural implements.
- All Farmers who are owner cultivators.
- Tenant farmers, Oral lessees and Share croppers.
- SHGs and JLGs of farmers including tenant farmers, share croppers
Maximum Permissible Bank Finance
OGBKCC scheme is designed to provide both production credit and investment credit to the farmers. Hence a portion of sanction amount under the scheme will be treated as Term Loan and other portion will be treated as Cash Credit.
- Short term requirement for raising various crops in a year, post-harvest & marketing expenses of Agricultural produce, consumption needs of the farmers during off-season, expenses for repairing / maintenance of farm equipment, cost of insurance of crop / farm assets and insurance of KCC holder under PAIS constitute the Cash Credit component of OGBKCC.
- Likewise, the requirement of the farmers for purchase of different agricultural equipment / machinery / land Development / Minor Irrigation and for taking up any activities allied to agriculture with repayment period of 5 years constitute the Term Loan component of OGBKCC. The items of investment where loan repayment period is more than 5 years should not be clubbed in OGBKCC and should be considered separately.
- The Cash Credit requirement of the farmers under different components depends mainly on Cropping Pattern, Scale of Finance and Area under Cultivation where as the Term Loan component depends largely on unit cost advised by NABARD / Bank from time to time, the quotations of items to be purchased and project cost of the activities to be taken up.
For further details visit nearest OGB Branch.