Kisan Credit Card (KCC) support for fishers and fish farmers in Odisha under PMMSY—interest subvention
Odisha has added a state interest subsidy on top of the Kisan Credit Card framework for fishers and fish farmers under the Pradhan Mantri Matsya Sampada Yojana ecosystem.
- The Kisan Credit Card facility provides working capital support for fishers and fish farmers.
- Odisha has linked state interest subvention to loan slabs within the Kisan Credit Card framework for fisheries beneficiaries.
- The Department of Fisheries and the Department of Financial Services are using State Level Bankers’ Committees and local meetings to improve scheme awareness.
What happened
The Government of India has extended the Kisan Credit Card (KCC) facility to fishers and fish farmers since FY 2018–19 to provide timely and affordable working capital for fisheries-related activities.
In Odisha, the State Government has added an additional interest subvention of 4% for loans up to ₹1.00 lakh and 2% for loans above ₹1.00 lakh and up to ₹3.00 lakh. According to the Government of Odisha, this makes smaller KCC loans effectively interest-free and lowers the cost of credit for higher-ticket loans within the covered range.
UPSC can use the Kisan Credit Card for fishers and fish farmers to test knowledge of financial inclusion, allied agricultural credit, and the role of Centre-State coordination in improving welfare delivery. The issue also opens a Mains discussion on affordability of institutional credit, implementation capacity, and sector-specific support for informal livelihoods.
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