KCC-An Effective Rural Credit Instrument to Small and Marginal Farmers-A Case Study

Kisan Credit Card aims at providing timely and adequate credit support from the banking system to the farmers with flexible and simplified procedure adopting whole farm approach. It includes the short term, medium term and long term credit needs of the borrowers for agriculture and allied activities. Later the scope of the card is expanded to cover the consumption and investment credit needs of the card holders besides providing him/her agriculture and personal insurance cover at a nominal cost. As per the available information approximately 9.06 crore farmers have been so far covered by the banking system, providing their farming clientele with KCC. However the present study aims at studying the effectiveness of the KCC scheme by comparing the agricultural revenue productivity and net benefit of KCC and Non KCC farmers in the Keesara Mandal of Ranga Reddy District of Telangana. For this purpose data were collected from 70 KCC holders and 70 Non KCC holders comprising of Marginal, Small & Big farmers from the 12 villages of the select Mandal, of the Ranga Reddy District during the year 2012. The present study made use of statistical tools like two sample T-test to measure the significance of relation specified in the study. The findings show significant difference between the agricultural revenue productivity and net benefit of KCC & Non KCC marginal farmers while no significant difference between the net benefit of KCC & NON KCC small and big farmers.