End-to-End
Digitalisation of KCC
Lending

Mission

Enabling frictionless finance for 120 million farmers in India by improving credit access through the Kisan Credit Card Scheme: the predominant mode of financing for farmers in India.

 



Reduced Turnaround Time (TAT)



Paperless
process



Reduced
Costs

The Kisan Credit Card (KCC), a government initiative aimed at providing credit to farmers, had long been encumbered by a lengthy application process, multiple KYC requirements, and high costs.

To alleviate these issues, we undertook a pilot project to digitalise the KCC lending process. We started by understanding the pain points of the process.

Key Issues Identified From
Field Study

Largely Paper-based Process

High Turnaround Time (TAT) of upto 2-4 weeks

Upto 5% additional costs (for a loan of 1 lakh) towards documentation

Process for

The KCC Pilot Project Process

A farmer applies for a KCC loan through an assisted or self-service mode

The farmer identity is verified using Aadhaar e-KYC through biometric or an OTP-based authentication

The bank fetches land record and ownership details of the farmer from the State Government Land Record Database using an API integration

  • a) Loan Eligibility is calculated using Business Rule Engine (BRE)
  • b) Loan amount is derived by automating the scale of finance
  • c) Loan documents are signed using Aadhaar eSign
  • d) Loan account is opened and instant disbursal of the amount

The end-to-end KCC Digitalisation Project aims at making a transformative impact on the rural credit delivery system. It reduces the loan disbursement time by adopting a straight through digital process that leverages India’s Digital Public Infrastructure and making the process faster and more efficient. 

The pilot was successfully launched in September 2022 in select districts in Madhya Pradesh and Tamil Nadu, with Union Bank of India and Federal Bank respectively. Based on insights gained from the pilot, we are enabling scale, and extending the process to KCC lending in several other states.

Potential Impact

  • Paperless process
  • Elimination of additional costs borne by farmer
  • Reduction in application TAT from 3-4 weeks to less than 1 hour
  • Widening and deepening of agricredit for small and marginal farmers
 

Problem Statement / Problem identified:

In India, women often face barriers to saving money due to various reasons such as lack of financial literacy, limited access to banking services, and complex user interfaces of existing savings applications. These challenges make it difficult for women to save money effectively and efficiently.

Proposed Project Phase:

We propose the implementation of an improved UI/UX for the Frictionless Savings App. Our primary objective is to create a user-friendly and intuitive interface tailored to the specific savings needs and preferences of women. By simplifying the savings process and incorporating features that promote financial literacy and empowerment, we aim to encourage regular saving habits among women.

Conclusion:

The Frictionless Savings Product for Women project strives to impact and enhance women’s saving practices in India. By designing an intuitive and women-friendly user experience, we aim to provide women with a technological means to take more control over their financial futures and help them achieve their family’s long-term financial goals.

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