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ABSTRACT

Animal husbandry is one of the country’s most notable agricultural sectors that have competed with overall economic development and it is also the sector with enormous growth potential. In this blooming sector, many times the animal husbandry farmers need the credit for the rearing of animals and the development of the farmers. Provision of timely and adequate credit has been one of the major challenges for banks in India in the dispensation of agricultural and rural credit to the farmers. Constant innovation is required to achieve this challenge. When compared with the agriculture farmers the animal husbandry farmers are always lagging in accessing the credit facilities by the government. In this concern, an innovative scheme was launched by the government of Haryana called the Pashu Kisan Credit Card. This scheme was exclusively meant for the animal husbandry farmer for accessing the credit facility from the government.

Keywords: Animal husbandry, Credit, Development, Innovation.

Animal husbandry has recognized as a blooming sector around the country over the past few decades. The 20^th Livestock Census Report was published recently by the Department of Animal Husbandry and Dairying along with the Ministry of Fisheries reported that the total livestock population is 536 million with an increase of 4% over the previous livestock census of 2012. This revealed that the country’s animal husbandry sector is rapidly growing. Despite these findings, important steps are being taken by the central and state governments to further expand the animal husbandry industry across the world. One such important step in expanding and development of the livestock sector is “Pashu Kisan Credit Card Yojana”.

The government has introduced the Pashu Credit Card scheme to help double the farmer’s income. The new scheme is a lot like the Kisan Credit Card and the new system offers loans to livestock farmers at low-interest rates.

 Pashu Kisan Credit Card

Haryana is the first state to put the scheme into effect. The First Pashu Kisan credit cards were distributed to 101 animal farmers in Bhiwani in Haryana. The Government of Haryana also has set a target of issuing 10 lakh Pashu Kisan Credit Cards by March 2021.

The government introduced the ‘Pashu Kisan Credit Card’ for livestock farmers to expand the animal husbandry business nationwide. Also, RBI has decided to extend the KCC facility to require working capital for activities relating to animal husbandry and fisheries.

The scheme’s main purpose is to assist the farmers who are practicing the Animal Husbandry. Loans are granted to farmers for breeding buffalo, cow rearing, goatrearing, sheep rearing, poultry rearing, and fish farming. No interest is levied in the case of loans up to the Rs.1.60 lakh. The interest rate on loans under the program is 7 %. The central government, however, offers a 3% subsidy and the state governments give a rebate to the remaining 4% and farmers won’t have to pay interest on loans up to Rs.1.60 lakh. If farmers want to make use of a loan up to Rs.1.60 lakh, they will be required to give an affidavit to the Deputy Director of the Animal Husbandry and Dairy Department. The animal would also require protection and the insurance costs of Rs.100. In the event the farmer has more than Rs.1.60 lakh loan, normal interest rates will be levied. However, a rebate will be provided in the event the farmer repays the loan within one year. Farmers can use the Pashu Credit Card to visit the bank and submit the application form.

 Kisan credit card V/S Pashu Kisan credit card

The Pashu Kisan credit card scheme is similar to the Kisan credit card scheme (KCC) so that under the Kisan credit card scheme (KCC), loans were issued to farmers at very low-interest rates. Similarly, loans are issued to farmers under the Pashu Kisan Credit Card scheme at very low-interest rates for raising the livestock to support the livestock farmers. Every loan the farmer receives is expected to be repaid in instalments under the Pashu Kisan credit card scheme. Under the Kisan Credit Card system, farmers are permitted to take loans per animal.

 Beneficiaries of Pashu Kisan Credit Card

Those farmers who either have less land or do not own land and if these farmers follow animal husbandry such as cow, goat, buffalo, etc. an get the benefit from the Pashu Kisan credit card scheme. Under the Pashu  Kisan credit card scheme, such farmers who either sell their animals due to financial weakness of money or if the animals become ill and unable to get them treated due to lack of money are given a benefit. In such a situation arises, these farmers will be financially helped by the government.

 How to Apply for Pashu Kisan Credit Card

The farmers have to go to the bank to get a Pashu (animal) credit card, where they can apply for it. The animal credit card scheme application form will be found in the bank itself, along with other documents to be included in the KYC documents, Aadhaar card, PAN card, Voter ID, etc. The value of animal credit will be provided based on the animal’s financial scale, according to the bank’s application.

Under the Pashu Kisan Credit Card, banks are permitted to credit the money to the farmers as given below;

·  The credit amount for a cow is Rs.40783 and Rs.60249 for a buffalo.  

·  The credit amount for goat and sheep each is Rs.4063. 

·  The credit amount for pig under the scheme is Rs.16337 per pig.

·  For Hens, it is to give Rs.720 per layer and Rs.161 per broiler hen

 

Benefits of Pashu Kisan Credit Card Scheme

If a farmer with a cow may take out a loan up to Rs 40783. Although based on the financial scale of the bank, i.e. 6797 per month, Pashu Kisan Credit Card can be used to loan 40783 rupees for a cow, the credit will be granted to the farmer in 6 equal instalments per month. If the farmer for whatever reason cannot obtain the credit for a month, he/she may also take the credit from the previous month for the next month. Thus, the accumulated sum of Rs 40783 will now be returned in 6 months within 1 year, with an annual interest of 4%. The balance would have to be repaid within one year at an average interest of 4%. The time period for the cardholder to return the 1-year balance will start from the same day it receives the first instalment.

Conclusion

The Pashu Kisan Credit Card system is emerging as a recent and critical credit distribution mechanism for meeting livestock farmer’s credit requirements in an acceptable and trouble-free way. This scheme is one of the Indian governments most innovative and promising scheme as it focuses heavily on livestock development and farmers. The scheme should be popularized among the farmers so that the benefit of this scheme is available to the farmers. The banks must make the process of obtaining loans under the Pashu Kisan Credit scheme easy so that the role of brokers and private money lenders can be minimized and the efficient allocation of money can be done for the maximum benefit of the farmers.

 

 

 

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