India is the country where farming is the main occupation of the people. Many time we heard about the cases where farmer died because of the financial crisis and poverty. To keep this fact in mind, the government of India introduces many programmes from time to time to help the farmers.
One of them is Kisan Credit Card Scheme (KCC) aims at providing adequate and timely support from the banking system to the farmers for their short-term credit needs for cultivation of crops. This mainly helps farmer for purchase of inputs etc.,during the cropping season. Credit card scheme proposed to introduce flexibility to the system and improve cost efficiency. The interest rate of Kisan Credit Card Scheme varies between 7% to 10 %.
Now, the Bengal government is planning to introduce Kisan credit card facility for the micro, medium and small enterprises. According to the Additional Chief Secretary, Department of MSME and Textiles Mr.Anup K Chand:
It is the constant endeavour of the government to provide credit to the sector. Similar to the KCC we intend to introduce a credit card subject to clearance by authorities concerned, for providing standing credit to the enterprises.It will help the farmer to start a new business as it will provide loan facility which will increases by the pass of time.
As per the IANS report:
There is no credit card facility for the sector. Although some banks do extend the facility, it is available only after the enterprise has completed three years of existence. With this mechanism we want to address the problems the organisations face just after inception or at the neo-natal stage. However there are many more problem face by the farmers such as poor electricity supply, poor infrastructure facility, hygenic problem etc.
Advantages of the Kisan Credit Card Scheme for medium and small enterprises to the farmers
- Access to adequate and timely credit to farmers.
- Full year’s credit requirement of the borrower taken care of.
- Minimum paper work and simplification of documentation for drawal of funds from the bank.
- Flexibility to draw cash at any time and buy inputs as per the need of the farmer and also to repay as and when surplus fund is available.
- Assured availability of credit at any time enabling reduced interest burden for the farmer.
- Sanction of the facility for 3 years subject to annual review and satisfactory operations and provision for enhancement.
- Flexibility of drawal from a branch other than the issuing branch at the discretion of the bank