Kisan credit card

Kisan credit card

• Introduced in august 1998
• R.V.Gupta committee
• Model scheme was prepared by NABARD
 What are objectives of kisan credit card?

• To provide adequate ad timely credit to

farmers
• Provide short term credit needs
• A reasonable components for consumption
need
• To support Post-harvest expenses
 What is the rate of interest under this
scheme?
• As per the rules of the priority sector lending the RBI has directed to all
the commercial banks to provide 18% of the Adjusted Net Bank Credit to
the agriculture sector.

• In the case of Regional Rural Banks (RRBs); 18% of their total outstanding
advances are required to be towards agriculture and a sub-target of 8%
has been set for lending to small and marginal farmers.

• The farmers get the short term crop loans up to Rs. 3 lakh at reduced rate
of interest at 7%. If the farmers deposit the loan amount on the due date;
they get another 3% rebate in the interest rate. So the effective rate of
interest would be only 4%.