Lok Sabha Question No. 2725 (UNSTARRED), answered on 2021-12-14
Subject: Simplification of KCC
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Sunil Kumar Pintu

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE

## LOK SABHA UNSTARRED QUESTION NO. 2725

TO BE ANSWERED ON  14 TH  DECEMBER, 2021

## SIMPLIFICATION OF KCC

2725. SHRI SUNIL KUMAR PINTU:

Will the Minister of AGRICLTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंी be pleased to state:

- (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?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंी (SHRI NARENDRA SINGH TOMAR)

- (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.

Status of issue of KCC under saturation drive as on 12.11.2021

| Sr. No.   | State Name                  | No of Application for KCC sanctioned   |
|-----------|-----------------------------|----------------------------------------|
| 1         | ANDAMAN AND NICOBAR ISLANDS | 7,190                                  |
| 2         | ANDHRA PRADESH              | 1,958,165                              |
| 3         | ARUNACHAL PRADESH           | 3,122                                  |
| 4         | ASSAM                       | 298,830                                |
| 5         | BIHAR                       | 463,637                                |
| 6         | CHANDIGARH                  | 6,538                                  |
| 7         | CHHATTISGARH                | 283,953                                |
| 8         | DADRA AND NAGAR HAVELI      | 277                                    |
| 9         | DAMAN AND DIU               | 863                                    |
| 10        | DELHI                       | 3,568                                  |
| 11        | GOA                         | 9,960                                  |
| 12        | GUJARAT                     | 1,624,233                              |
| 13        | HARYANA                     | 414,142                                |
| 14        | HIMACHAL PRADESH            | 169,685                                |
| 15        | JAMMU AND KASHMIR           | 740,766                                |
| 16        | JHARKHAND                   | 261,889                                |
| 17        | KARNATAKA                   | 1,680,099                              |
| 18        | KERALA                      | 1,100,288                              |
| 19        | LADAKH                      | 8,166                                  |
| 20        | LAKSHADWEEP                 | 342                                    |
| 21        | MADHYA PRADESH              | 1,711,609                              |
| 22        | MAHARASHTRA                 | 3,949,144                              |
| 23        | MANIPUR                     | 5,196                                  |
| 24        | MEGHALAYA                   | 20,923                                 |
| 25        | MIZORAM                     | 19,874                                 |
| 26        | NAGALAND                    | 17,053                                 |
| 27        | ODISHA                      | 649,438                                |
| 28        | PUDUCHERRY UT               | 8,459                                  |
| 29        | PUNJAB                      | 513,412                                |
| 30        | RAJASTHAN                   | 2,338,383                              |
| 31        | SIKKIM                      | 4,693                                  |
| 32        | TAMIL NADU                  | 1,027,859                              |
| 33        | TELANGANA                   | 1,187,559                              |
| 34        | TRIPURA                     | 155,261                                |
| 35        | UTTAR PRADESH               | 3,320,356                              |
| 36        | UTTARAKHAND                 | 538,549                                |
| 37        | WEST BENGAL                 | 1,556,205                              |
|           | Total                       | 26,059,687                             |

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