Main Article Content
Abstract
Kisan Credit Card (KCC) scheme is an important effort of the banking sector for promoting agricultural credit and for achieving financial inclusion. The study evaluates the impact of KCC Scheme on farm economy. The primary data was collected from 120 farmers by personal interview from Nagapattinam District of Tamil Nadu. Farm business analysis, Cobb-Douglas production function, legit function and Garrett’s ranking technique were used to assess the resource use efficiency, constraints faced by the farmers and the impact of KCC scheme on farm economy. It was found that the cost of cultivation and net income per hectare for three major crops (paddy, sugarcane and groundnut) were higher for beneficiary farmers than that of the non-beneficiary farmers. The transaction cost of borrowing was observed to be lower for beneficiary farmers which need to be further brought down. The constraints in the use of KCC are lengthy paper work, delay in payment of loan, and non-availability of loan on time, etc.