Kisan Credit Card Scheme is a Government of India scheme aiming to provide short-term credit to farmers as well as people from the fisheries and animal husbandry sector. The loan amount can be used to purchase equipment and meet other everyday needs. The scheme was introduced by NABARD to save the farmers from the exorbitant interest rates charged by moneylenders from the unorganized lending sector.
Under the KCC scheme, farmers can avail interest rates as low as 2% per annum. Moreover, the repayment period is based on the harvesting or marketing period of the crop for which the loan amount was taken, which makes it even more beneficial for them.