Rural Credit: KCC, SHG–Bank Linkage, PMEGP & Refinance
Access crop and allied credit via KCC, low‑cost SHG loans with interest subvention under DAY‑NRLM, rural enterprise credit via PMEGP, and NABARD‑guided refinance pathways
Quick Stats
About Rural Finance
Rural finance channels include Kisan Credit Cards (KCC) for crop and allied working capital, SHG–Bank Linkage under DAY‑NRLM with interest subvention to bring women’s groups into formal credit, and PMEGP to promote micro‑enterprise with higher rural subsidy slabs. NABARD’s refinance and district‑wise Potential Linked Credit Plans (PLPs) guide branch targets and sector priorities. [15][6][2][1]
KCC offers revolving limits for cultivation, post‑harvest, marketing, consumption needs, and allied activities with simplified drawals and renewals, while SHGs access multiple credit doses at affordable rates supported by subvention mechanisms and community‑based repayment frameworks. [7][6]
Rural manufacturing and services can leverage PMEGP with 35% subsidy in rural areas (women and special categories prioritized), implemented through KVIC/State boards/DICs, complementing NABARD refinance across agri‑allied and rural MSME activities. [2][4][3]
Kisan Credit Card
Single‑window working capital for crops and allied activities; limit based on land/crop scale and allied needs; typical 5‑year validity with renewals.
NRLM SHG Credit
Women SHGs get bank linkage with interest subvention on loans at 7% p.a.; community repayment mechanisms and financial literacy drive inclusion.
PMEGP Rural
Credit‑linked subsidy up to 35% for rural projects; promotes micro‑enterprise creation in villages and small towns.
NABARD Refinance/PLP
Refinance windows support agri/allied credit; PLPs map sectoral credit potential and gaps at the district level.
Success Stories
"NRLM linkage at 7% enabled bulk feed purchase and dairy expansion with disciplined community repayments."
Annapurna SHG
Dairy & Allied
Funded: ₹3 Lakhs
"KCC covered crop inputs and post‑harvest costs, stabilizing seasonal cashflows and market timing."
Harihar Farms
Horticulture
Funded: ₹5 Lakhs
"PMEGP rural subsidy reduced upfront burden and created five local jobs within six months."
Village Woodcrafts
Rural Enterprise
Funded: ₹18 Lakhs
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