Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) and Kisan Credit Card (KCC) linkage 

In this article we would explain all about Pradhan Mantri Kisan Samman Nidhi or PM-KISAN scheme and Kisan Credit Card or KCC. 

What is Kisan Credit Card ?

To provide Indian farmers with timely monetary assitance and credit support the government has launched multiple schemes. One such scheme is the Kisan Credit Card (KCC) scheme. Kisan Credit Card is a central government scheme which offers farmers with timely credit access. The scheme created by National Bank for Agriculture and Rural Development (NABARD) in 1998 provides farmers with short-term formal credit. It was created by the National Bank for Agriculture and Rural Development (NABARD). 

What is Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme?

Pradhan Mantri Kisan Samman Nidhi or PM-KISAN scheme under which a financial benefit of Rs. 6000/- per year is provided to the eligible beneficiary farmer families, payable in three equal 4-monthly installments of Rs.2000/- each. The fund is transferred directly to the bank accounts of the beneficiaries. In this scheme, Samman Rashi of over Rs. 1.15 lakh crores has been transferred to farmer families so far. 

Kisan Credit Card has now been linked to the Pradhan Mantri Kisan Samman Nidhi Yojana 

Now the Kisan Credit Card scheme has been linked to the Pradhan Mantri Kisan Samman Nidhi Yojana (PM Kisan). Due to this linkage now benificiaries can seek a loan from KCC for up to Rs 3 lakh at 4 % rate of interest. The KCC scheme was introduced to ensure that the credit requirement for farmers in the agriculture, fisheries, and animal husbandry sector was being met. This was done by helping them avail short-term loans and provide them with a credit limit to purchase equipment and for their other expenses as well.  

How does it benefit farmers?

Under this scheme farmers avail loan at significantly lower interest compared that offered by banks. The interest rate for KCC starts as low as 2% and averages around 4% and farmers can repay loans depending on the harvesting period of their crop for which the loan was given.  

Farmers can also apply for Kisan Credit Card through the State Bank of India. SBI started this online service to facilitate KCC Review.