(a) whether the Government proposes to simplify the process of Kisan Credit Card (KCC) and reduce the rate of interest thereon;
(b) if so, the time by which it is likely to be implemented;
(c) if not, the reasons therefor; and
(d) the number of farmers who have been issued KCCs in the country, State-wise/District-wise, particularly in Bihar?
MINISTER OF AGRICULTURE AND FARMERS WELFARE
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(a) to (c): The following initiatives have been taken to bring the maximum number of farmers under KCC in order to provide easy access to concessional institutional credit and simplify the process to avail KCC: -
? All kinds of service charges like processing fee, inspection, ledger folio charges for loans upto Rs.3.00 lakh has been waived off.
? Collateral free loan limit for short term agri-credit has been raised from Rs.1.00 lakh to Rs.1.60 lakh.
? KCC has been extended to the farmers practicing Animal Husbandry and Fisheries.
? A simple one-page special application form was also designed and shared with banks.
From February, 2020 Government of India is running KCC Saturation drive in collaboration with DFS and other stakeholders in order to increase coverage under Kisan Credit Card Scheme.
The Government of India is also implementing Interest Subvention Scheme with a view to provide short term Agri-loans to the farmers at concessional rate of interest. Under the scheme, short term crop loan upto Rs. 3.00 lakh availed through KCC is available to farmers engaged in Agriculture and other allied activities at benchmark rate of 9%. Government of India provides 2% Interest Subvention on the benchmark rate. Additional 3% subvention is also given to the farmers for prompt and timely repayment of loans; thus the effective rate of interest comes down to 4% per annum.
(d): The number of farmers who have been issued KCCs during the drive from February 2020 till 12.11.2021, State-wise, including Bihar is available at annexure.