Walver, Kisan Credit Cards and Loans to Tenant Farmers India
Walver of margin/security requirements
The banks have been advised to waive margin/security requirements for agricultural loans up to Rs. 50,000/-.
Introduction of Kisan Credit Cards:
- The Kisan Credit Card (KCC) Scheme was introduced by the Central Govt. in Aug’ 1988 to facilitate easy access to short and medium-term loans to the farmers from the banking system.
- NABARD has advised banks to extend coverage through expansion of their outreach by lending to more farmers including non-wilful defaulters, oral lessees, tenant farmers and sharecroppers as well as new farmers.
- From 31st Jan, 2006, the KCC Scheme has been extended to all types of loan requirements of borrowers of State Cooperative Agricultural Rural Development Banks (SCARDBs), covering even long-term credit and a reasonable component of consumption credit within the overall limit sanctioned to the borrowes.
- It may be seen that in some States there are no RRBs or Cooperative Banks functioning.
- By the end of March, 2007, farmers were issued a total of 65.63 lakh Kisan Credit Cards. 812.90lakh KCCs were issued up to 31st March, 2009.
- Now, there is also a coverage of risk of KCC holders against accidental death or permanent disability upto a maximum of Rs.50,000 and Rs.25,000 respectively.
Loans to Tenant Farmers and Share croppers:
- NABARD has formulated a scheme to provide loans to provide loans to tenant farmers and oral lessees for raising crops. It would facilitate formation and financing of groups of tenant farmers by organizing them into groups know as tenant farmers Groups (TFGs).
- The objective of the scheme is to provide crop loans through institutional agencies to Tenant Farmers, Oral Lessees and share croppers, who are not being extended credit support due to their inability to provide tangible securities and are unable to produce the documents regarding their rights on the land.
- NABARD extends refinance support to RRBs and SCBs/DCCBs to the extent of 100% of the loans provided by the banks to the TFGs.