CONSTRAINTS FACED BY RESPONDENTS ON KISAN CREDIT CARD SCHEME AND SEEK THEIR SUGGESTIONS FOR BETTER SERVICES

Abstract

The scheme Kisan credit card was started in August 1998 in order to provide timely 
and hassle free credit for the production requirements of the farmers. The main 
purpose of the scheme was to meet the production as well as consumption needs of the 
farmers. The present study was conducted in Soraon block of Prayagraj district of 
Uttar Pradesh. Ex-post facto research design was followed for the analysis. There are 
20 blocks in the selected district out of that Soraon block was selected purposively 
because the existence of Kisan Credit Card scheme is comparatively more as compared 
to other blocks. There are 71 villages in the selected block out of that number of 6 
villages was selected based on maximum number of farmers involved in KCC scheme. 
Total number of 120 respondents were selected randomly from 6 villages for the 
present study The major constraints faced by the respondents are High rate of interest 
on loan followed by Purpose of availing loan not accepting, Timeliness of credit, Delay 
by bank side and Duration of loan was very short. It was suggested that Credit limit to 
be increased considering family expenses, Extent of validity of card up to 5 years, 
Lower the interest rate, Repayment only after harvest, Flexibility to draw cash and 
Limit to be fixed on the basis of operational land holding, which will be lead all round 
development in the research area.