Pashu Kisan Credit Card: Livestock-rearing farmers will be able to avail collateral-free loans with this card..

In the country's rural areas, traditional farming is no longer the sole source of income. Today, businesses such as dairy farming, goat rearing, and poultry farming are giving new momentum to the rural economy. Meanwhile, the government is implementing various schemes to boost this growing rural economy. One such initiative is the 'Pashu Kisan Credit Card' (Livestock Kisan Credit Card), offered by the government to support farmers engaged in animal husbandry.

For small farmers and livestock owners, 'capital'—or the lack of funds—has always been a major challenge. Whether purchasing new livestock, procuring fodder, or covering medical expenses, a shortage of money often led people into the clutches of moneylenders. To address this issue, the government introduced this special scheme. Let us explore the benefits of this scheme and who is eligible to apply.

How is the loan obtained?
The best feature of this scheme is that the loan amount is determined based on the number of livestock owned. Specific guidelines have also been established by various states. The government provides a loan of up to ₹40,000 for purchasing a cow or for related activities, while the limit for a buffalo is ₹60,000.

Additionally, if you are starting a small business, you can secure a loan of up to ₹1.60 lakh without the need for substantial collateral. The government also provides separate financial assistance for goat and sheep rearing. Beyond purchasing livestock, the loan amount can be used to cover expenses related to fodder, medicines, vaccinations, and other dairy-related costs.

What is the interest rate for the KCC?
Compared to expensive market loans, the interest rate on the Livestock KCC is significantly lower. The interest rate is approximately 7%; however, farmers who repay their installments on time receive a 3% rebate, effectively bringing the interest rate down to just 4%. Access to affordable credit has greatly eased the financial burden on livestock owners; previously, more than half of their income would often be consumed by debt repayment. Women can also benefit from this.
Women in rural areas have always been at the forefront of animal husbandry and milk production. Now, this scheme is proving to be a game-changer for women's Self-Help Groups (SHGs). With the help of loans, women are setting up their own dairy units, thereby becoming financially self-reliant.

How to apply?
To ensure convenience for farmers, the government has kept the application process very simple and digital-friendly.

Visit your nearest government or private bank branch.
Ask for the 'Animal Husbandry KCC' form and fill it out.
Along with the form, you will need to submit basic documents such as an identity proof (e.g., Voter ID), PAN card, proof of address, and a health certificate for the livestock.
Once the bank completes the verification, you will be issued an 'Animal Husbandry KCC card,' which functions like a debit card. With this card, you can withdraw cash from an ATM whenever needed.

Disclaimer: This content has been sourced and edited from Dainik Jagran. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.