Big News: Government Announces Credit Boost of Rs 2 lakh crore for 2.5 crore Farmers through Kisan Credit Cards

Finance Minister Nirmala Sitharaman today (14^th May 2020) announced concessional credit boost worth Rs 2 lakh crore for 2.5 crore farmers via Kisan Credit Cards (KCC) issued by the Centre. She said that “A special drive will be undertaken to offer concessional credit to PM-Kisan beneficiaries via Kisan Credit Cards. Fishermen & Animal husbandry farmers would also be included in this drive”.

About 2.5 crore farmers across the country will be covered and will benefit from the credit flow of about Rs 2 lakh crore. The minister indicated that around 25 lakh new Kisan Credit Cards are in the pipeline for small & marginal farmers. It must be noted that Kisan Credit Card is a government scheme that aims to save farmers from high-interest rates generally charged by money lenders in the unorganised sector.

The incentive on crop loans provided till March has also been extended till 31^st May to support farmers, Finance Minister said while sharing details of the 2nd phase of the economic stimulus package worth Rs 20 lakh crore announced by PM Modi on Tuesday.

Sitharaman told that three crore farmers with farm loans of Rs 4.22 lakh crore availed the benefit of three-month loan moratorium. The announcements made by Finance minister today focussed on small farmers, migrant workers, street vendors and small traders.

Sitharaman on Wednesday (13^th May 2020) had announced key economic measures to support stressed Micro, Small & Medium Enterprises (MSMEs). Finance minister also announced Rs 3 lakh crore collateral-free automatic loans for the businesses, including MSMEs that will benefit around 45 lakh units. Besides this, Sitharaman had announced Rs 20,000 crore sub-ordinate debts for hassled MSMEs, that will likely benefit around two lakh micro, small & medium industries.

She said that functioning MSMEs that are non-performing assets or stressed would also be eligible for such loans. Finance minister added that the Centre will provide a support of Rs 4,000 crore to Credit Guarantee Funds Trust for Micro and Small Enterprises (CGTMSE), which will provide partial credit guarantee support to banks.