Credit & Finance Schemes

Farming needs money at the wrong times: inputs must be bought months before the harvest pays, and bigger investments — a warehouse, a cold room, a processing unit — are out of reach for a single small farmer. The schemes in this category make formal credit cheap and reachable so farmers do not fall back on moneylenders. They work in three ways: subsidising interest on everyday crop loans, subsidising and guaranteeing long-term infrastructure loans, and helping farmers form collectives that can borrow and bargain at scale.

Schemes in this category

• Kisan Credit Card (KCC) & Modified Interest Subvention Scheme — A revolving bank credit line for crops, dairy, and fisheries; short-term loans at 7% interest, dropping to an effective 4% with on-time repayment.
• Agriculture Infrastructure Fund (AIF) — Rs 1 lakh crore facility offering 3% interest subvention and a government-paid credit guarantee on loans up to Rs 2 crore for warehouses, cold storage, processing, and community farm assets.
• Formation & Promotion of 10,000 FPOs — Forms and funds Farmer Producer Organisations with up to Rs 18 lakh in support, Rs 15 lakh matching equity, and a Rs 2 crore credit guarantee, so small farmers can buy and sell together.