Bridging the Gap of Credit: A Micro-Level Analysis of Kisan Credit Card (KCC) in Prayagraj District

Abstract

This study examines the effectiveness of the Kisan Credit Card (KCC) scheme in expanding institutional credit access and improving agricultural productivity among small and marginal farmers in Prayagraj district, Uttar Pradesh. Adopting a mixed-methods approach, the research integrates structured surveys of 120 respondents with qualitative insights from focus group discussions (FGDs) and stakeholder interviews. Quantitative findings reveal that 79.2% of KCC beneficiaries were male, indicating persistent gender disparities in formal credit access, while 61.7% were marginal landholders, highlighting structural vulnerability within the rural credit system. Awareness of core scheme components such as loan validity (87%) and interest subvention (76%) was high, but digital adoption remained limited—only 54.2% of farmers used RuPay cards regularly, and 42% were aware of embedded insurance benefits. Cross-tabulation and correlation analyses demonstrate significant disparities in credit utilization by gender and landholding, and a strong positive relationship (r = 0.91) between timely credit disbursement and crop yield improvement. Thematic evidence further exposes institutional bottlenecks, including Aadhaar mismatches, digital illiteracy, and gender-based constraints. The findings reinforce the credit constraint hypothesis, underscoring the importance of aligning KCC with complementary programs such as PM-KISAN, PMFBY, and Self-Help Group (SHG) initiatives. The study advocates for a shift toward user-centric financial inclusion models under KCC 2.0, integrating gender sensitivity, digital literacy, and institutional accountability.