Farmers in India have to face many difficulties in arranging short-term funds for the planting and harvesting season and to meet other regular agricultural needs. They are largely dependent on credit from the unorganized sector such as moneylenders who charge exorbitant rates of interest. Realizing the need for such short-term credit, the Kisan Credit Card Scheme was launched by the Reserve Bank of India and NABARD in August 1998.
The objective of this scheme is to free the farmers from the shackles of informal lending and to meet their comprehensive credit requirements. Kisan Credit Card is offered by Commercial Banks, Regional Rural Banks (RRB) and Co-operative Banks.