Question: Government has decided to extend the Kisan Credit Card (KCC) Scheme to dairy farmers too. What is the amount of collateral free loan to be given to these farmers under this scheme?
(a) 2 Lakh
(b) 5 Lakh
(c) 3 Lakh
(d) 1 Lakh
Answer: (c)
Related facts:
- The Government on June 1, 2020 announced to provide Kisan Credit Card (KCC) to 1.5 crore dairy farmers belonging to Milk Unions and Milk producing Companies.
- This will be done within the next two months (1st June-31st July 2020) under a special drive.
- The Department of Animal Husbandry and Dairying in association with Department of Financial Services has already circulated relevant circulars and KCC application format to all State Milk Federation and Milk Unions for implementing the same on a mission mode.
- Under the dairy cooperative movement, approximately 1.7 crore farmers are associated with 230 Milk Unions in the country.
- In the first phase of this campaign, the target is to cover all farmers who are members of dairy cooperative societies and associated with different Milk Unions and who do not have KCC.
- Farmers who already have KCC based on their land ownership, can get their KCC credit limit enhanced, though interest subvention shall be available only to the extent of Rs 3 lakhs.
- Although the general limit for KCC credit without collateral remains Rs. 1.6 lakh, but the case of farmers whose milk is directly procured by Milk Unions falls under tie up arrangements between the producers and processing units without any intermediaries, and hence the credit limits without Collateral can be upto Rs.3 lakh.
- The special drive to provide KCC to 1.5 crore dairy farmers is part of the Prime Minister’s Atma Nirbhar Bharat package for Farmers.
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