Budget expectation: More incentives for agriculture schemes, KCC may see changes

The budget can bring in more incentive for the agriculture sector schemes. Ahead of the Union Budget 2023-24, in a report by SBI Research said that said that the government should focus on agriculture and rural economy and review some of the schemes like Kisan Credit Card.

In its report, SBI Research said that the for the renewal of Kisan Credit Card loans the payment of the interest should be enough. Government had recently introduced Interest Subvention Scheme (ISS) which aimed that farmers would have to pay a minimum interest rate to the bank for applying for cards.

«Renewal for KCC loans requires payment of both principal and interest, to ensure interest subvention. It is proposed that the payment of interest should be enough condition for renewal of KCC loans of small and marginal farmers for amounts up to 3 lakhs,» the report said.

Kisan Credit Card helps farmers to meet their agricultural requirements, by providing them with loans for the short term and a credit limit. The Kisan Credit Card scheme aims at providing adequate and timely credit support from the banking system under a single window with flexible and simplified procedure to the farmers for their cultivation and other needs, said RBI in its statement.

Farmers either individualjoint borrowers who are owner cultivators; tenant farmers, oral lessees and share croppers, self help groups (SHGs) or joint liability groups (JLGs) of farmers including tenant farmers, share croppes can apply for this card.

Banks as the State Bank of India (SBI), HDFC Bank, ICICI Bank, Axis Bank, and Central Bank of India, UCO Bank, Indian overseas, among others, offer KCC cards.

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