India is an agro based country and most of the income is generated through agriculture sector. Farmers are considered as the backbone of Indian Economy. For agricultural activities farmers need money but it is not always that the farmers have money. Lack of money can hamper the farming process and thus the crops get affected. So to overcome this the NDA led government in 1998 launched the kisan credit card scheme for the help of farmers. The government introduced the kisan credit card with an aim to fulfill all the financial needs of the farmers. Following are the two main reasons for which the kisan credit card scheme was introduced:
- In order to fulfill short – term credit needs of farmers.
- In order to reduce the dependency of farmers on the moneylenders or any other informal banking sector.