The department of financial services is working with the ministry of agriculture and farmers welfare to increase the limit on Kisan Credit Card (KCC) loans and conceptualise a PM Street Vendor's Atmanirbhar Nidhi (PM-SVANidhi)-type scheme for tenant farmers.
“We are looking to increase the kisan credit card loan limits, which were set three or four years ago,” MP Tangirala, additional secretary, department of financial services said in his special address on August 3 at the CII Financing 3.0 Summit. He also stressed on the need to reform farm credit mechanism.
The scheme, which was started in 1998, allows for a maximum credit limit of Rs 3 lakh. The outstanding credit in KCC accounts stood at Rs 9.81 lakh crore.
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Tangirala noted that the scheme also needed to be extended to finance agricultural tools and implements.
Given the success of PM Street Vendor's Atmanirbhar Nidhi for street vendors, the department was also in talks with the ministry to develop a similar scheme for tenant farmers, he added.
The additional secretary also highlighted the need to redefine agriculture to include allied activities, which, at present, account for just 12 percent of credit.
“We are also horribly underinsured,” Tangirala highlighted, while also pointing to the need to correct regional imbalances.
Northeast states have a lower agriculture credit to GVA ratio than Southern states, he pointed out.
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