PM-Swanidhi (Atmanirbhar Nidhi) scheme : Under this, it is being considered to increase the limit of KCC loan from the limit fixed three or four years ago. Apart from this, the central government is also considering implementing a new scheme which will be for farmers like the PM-Swanidhi (Atmanirbhar Nidhi) scheme.
Additional Secretary of the Department of Financial Services MP Tangirala said at the CII Financing 3.0 Summit, “We are working on a plan to increase the limit of Kisan Credit Card loan, which was fixed three or four years ago. We feel it needs to be updated.”
Currently the maximum loan limit under the KCC scheme is ₹ 3 lakh and the total outstanding borrowing under this scheme is ₹ 9.81 lakh crore. The central government provides an interest discount of 2% on this scheme and an incentive of 3% on timely repayment, making the interest rate a total of 4% per annum.
RBI has recently extended the period of Modified Interest Subsidy Scheme (MISS), under which short-term loans taken through KCC during the current financial year will be provided. Under this, eligible farmers will get concessional interest rate on loans up to Rs 3 lakh. Under MISS, farmers will get loans at a low interest rate of 7% and will also get an additional 3% interest subsidy on timely repayment. Aadhar linking will remain mandatory for farmers.
The KCC scheme was launched in 1998, with the main objective of providing timely and adequate credit to farmers. In 2004, it was expanded to meet the investment loan requirements of agricultural and non-agricultural activities. In 2012, a committee headed by Indian Bank CMD T.M. Bhasin worked towards streamlining the process of this scheme and issuing electronic KCC cards.
Also, after the success of the PM Street Vendor’s AtmaNirbhar Nidhi scheme, the Centre is now considering implementing a similar scheme for tenant farmers. There is a need to include a new definition of agriculture, which currently has a share of only 12% in loans, Tangirala said.