A Study on Acquisition, Use and Repayment Pattern of Kisan Credit Card Scheme in Himachal Pradesh

This micro-level study was conducted in Himachal Pradesh and is based on primary data collected from 50 Kisan Credit Card (KCC) beneficiary farmers (24 small, 13 medium and 13 large) and 30 non-KCC farmers selected randomly from 8 villages of Kangra district. The Kisan Credit Card (KCC) scheme has been initiated to simplify the procedure for acquisition and use of credit by the farmers and is expected to bring transformation in the rural credit structure and delivery mechanism. The average credit limit sanctioned for small, medium and large farms came out to be 21, 792, 50, 385 and 1, 20, 231, respectively and the average amount borrowed by these categories was 19, 083, 45, 885 and 99, 615, respectively. The logistic analysis revealed that likelihood of adoption of KCC scheme significantly increased with the increase in the size of land holding and area under vegetable crops while higher education level and increase in family income reduced the probability of adoption. The probability of regular repayment was also significantly enhanced with the increase in area under vegetables and total family income. Based on the findings of the study, the scheme was found to fulfill social welfare objective favouring the resource-poor farmers. However, need was expressed by the farmers for revising their credit limits keeping in view the rising input prices and to consider other factors besides land holding like the area under commercial crops, possession of dairy/sheep/goat herds and farm enterprises.