New Delhi, Oct 20 (IANS): The Centre on Monday said that it has achieved the milestone target of covering more than 1.5 crore farmers under the Kisan Credit Card (KCC) scheme, with sanctioned credit limit of Rs 1.35 lakh crore.

As part of the Aatmanirbhar Bharat Package, the government has announced the aim to cover 2.5 crore farmers under the KCC scheme with a credit boost of Rs 2 lakh crore through a special saturation drive.

As a result of concerted and sustained efforts by the banks and other stakeholders in the direction of providing access to concessional credit by the farmers, including fishermen and dairy farmers, a major milestone target of covering more than 1.5 crore farmers under KCC, with sanctioned credit limit of Rs.1.35 lakh crore has been achieved, a Finance Ministry statement said.

The KCC scheme was introduced in 1998 with the objectives of providing adequate and timely credit to the farmers for their agricultural operation. The government provides interest subvention of two per cent and Prompt Repayment Incentive of three per cent to the farmers, thus making the credit available at a very subsidised rate of four per annum.

The government had extended the benefits of KCC with interest subvention in 2019 to the animal husbandry, including dairy and fisheries farmers, for their working capital requirement and raising the existing limit of collateral free agriculture loan from Rs. 1 lakh to Rs 1.60 lakh.

While ensuring convenient and cost-effective credit delivery to farmers, the ongoing campaign will also be instrumental in driving the rural economy and further accelerating agricultural production and allied activities, besides enhancing the income level of farmers, the statement added.