NABARD • RBI • MoRD
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
KCC
Crop & Allied WC
SHG
NRLM Linkage
PMEGP
Rural Subsidy 35%
NABARD
PLP/Refinance
- KCC Tenure
- Up to 5 Years
- KCC Rate
- 7% p.a. (subvention)
- SHG Subvention
- Loans at 7% with interest support
- PMEGP Rural
- 35% Subsidy (Women/SC/ST higher category)
- NABARD PLP
- District‑wise credit priorities
- KCC Limit
- Land, crop, allied‑based
01Overview
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.
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.
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.
- 01
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.
- 02
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.
- 03
PMEGP Rural
Credit‑linked subsidy up to 35% for rural projects; promotes micro‑enterprise creation in villages and small towns.
- 04
NABARD Refinance/PLP
Refinance windows support agri/allied credit; PLPs map sectoral credit potential and gaps at the district level.
02Who can apply
Eligibility Criteria
Beneficiaries
3 points- Farmers including tenants/share‑croppers for KCC; limits based on land/crop.
- Women SHGs and federations under DAY‑NRLM for bank‑linked credit and subvention.
- Rural entrepreneurs for PMEGP micro‑enterprise units (manufacturing/services).
Facilities
3 points- KCC: crop loan, post‑harvest, marketing, consumption, allied activities, and investment components.
- SHG loans: multiple doses with interest subvention above 7% p.a. as per norms.
- PMEGP: credit with capital subsidy; training and handholding via KVIC/DIC.
Program Guidance
3 points- PLPs identify district credit potential and guide targets for banks and stakeholders.
- NABARD refinance supports agri/allied credit and rural infrastructure indirectly.
- NRLM sets inclusion targets across vulnerable groups (SC/ST/Minorities/PwD).
03Paperwork
Required Documents
0 / 9 ready
Tick the documents you already have
KCC
NRLM SHG
PMEGP Rural
04Step by step
Application Process
- 01
Assess Need & Route
1–2 DaysDecide between KCC for farm/allied WC, SHG linkage for group credit at 7%, or PMEGP for rural enterprise capex with subsidy.
Refer district PLP to align with priority sectors.
- 02
Apply & Appraisal
3–10 DaysFile applications at banks/portals; banks appraise land/crop scale for KCC, SHG grading for NRLM, and DPR for PMEGP.
Use RSETIs for training and DPR support.
- 03
Sanction & Support
OngoingSanctions issued with subvention/subsidy linkage; SHGs receive multiple doses; PMEGP units receive training and margin money processing.
Follow PLP priorities for convergence with state schemes.
- 04
Utilization & Renewal
Seasonal/AnnualKCC operated with seasonal drawals/repayments; SHGs revolve funds and repay; PMEGP projects implemented per plan with inspections.
KCC validity up to 5 years with periodic reviews.
05Why it's worth it
Key Benefits
Affordable Credit
KCC at 7% with subvention and SHG loans with interest support reduce borrowing cost for rural households.
- Lower rates
- Flexible drawals
- Multiple doses
Rural Subsidy
PMEGP rural slab at 35% lowers capex burden and encourages village‑level enterprise creation.
- Lower margin
- Faster payback
- Employment
Guided Credit Flow
PLPs and NABARD refinance align bank credit with local agri, MSME, and infrastructure priorities.
- District mapping
- Target setting
- Convergence
Inclusive Growth
NRLM’s focus on women SHGs and vulnerable groups expands financial inclusion and livelihoods.
- Women‑led
- Community repayment
- Livelihoods
06Questions
Frequently Asked Questions
- KCC covers post‑harvest expenses, produce marketing loans, household consumption, maintenance of farm assets, and allied activities.
- Eligible SHGs can access loans at 7% p.a. with interest subvention, with additional support mechanisms for timely repayment.
- Rural units receive a higher capital subsidy slab of 35% versus 25% in urban areas, with additional prioritization for women and special categories.
- PLPs assess district‑wise credit potential and guide banks and governments on sectoral targets and gaps to prioritize rural lending.
- RSETIs under DAY‑NRLM provide skill and entrepreneurship training and link candidates with bank credit for self‑employment.
Plan your EMI before you apply
See the monthly instalment, the real cost of interest and how the balance falls, year by year.
EMI Planner
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Monthly EMI
₹32,241
Total interest
₹4.34 L
Total payable
₹19.34 L
Principal 78%
Interest 22%
Every ₹1 borrowed costs ₹1.29 in total.
What you pay each year
Illustrative only. Your actual rate depends on the lender, scheme and your credit profile.
Real outcomes
Success Stories
“NRLM linkage at 7% enabled bulk feed purchase and dairy expansion with disciplined community repayments.”
Annapurna SHGDairy & AlliedFunded: ₹3 Lakhs“KCC covered crop inputs and post‑harvest costs, stabilizing seasonal cashflows and market timing.”
Harihar FarmsHorticultureFunded: ₹5 Lakhs“PMEGP rural subsidy reduced upfront burden and created five local jobs within six months.”
Village WoodcraftsRural EnterpriseFunded: ₹18 Lakhs
Rural Finance
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