Cash-less Credit Ecosystem In India

By Author: creditai
Total Articles: 4
Comment this article

How can poor farmers get a loan from banks? When there are many documentation processes and sometimes political support needed for the common man?

Farmers all over are experiencing the same form of distress ie; the struggles of getting a loan approved from the bank. Most banks tend to avoid the application regarding the request for getting a loan by small and marginalized farmers. This takes place only because of the common misconception that their crop would eventually fail resulting in an overdue loan.

To tackle this issue faced by the whole agrarian economy, the government introduced the KCC ( Kisan Credit Card ) scheme. This scheme assists the farmers in availing the credit from the bank so that they’ll be able to purchase agricultural inputs readily.

The farmers go through a lot of hustle just to get a loan approved. The process they go through is tiring and can be hectic since the banks hesitate in giving out loans to small and marginalized farmers. In the end, their last resort is the local financers who charge high-interest rates for the funds pushing the farmer into deeper debts.

In ...
... light of the problems faced by the farmers, organizations have introduced a cashless credit ecosystem that enables them to purchase agricultural products. The cashless credit ecosystem has the advantage of traceability which is not possible with cash transactions. The cashless credit ecosystem in India is designed to provide farmers with credit under low interest. This saves them from the burden of debt due to piling interest.

https://creditai.co/