Aquaculture has emerged as a transformative force in Karnataka’s rural landscape. With rising demand for fresh fish and shrimp, fish farmers are seeking structured credit to expand operations and boost productivity. However, limited access to formal credit and skewed working capital cycles often hamper their growth.
The KPC (Kisan Pragati Card) Pisciculture Loan, offered by Ujjivan Small Finance Bank, addresses this gap — delivering both overdraft and term loan solutions tailored to aquaculture needs.
So, how exactly does this scheme work, and what should fish farmers know before applying? Let’s break it down.
What Is the KPC Pisciculture Loan?
Designed for freshwater, shrimp, prawn, and crab farming, the KPC pisciculture loan offers:
- Overdraft facility for flexible working capital
- Term loan for long-term infrastructure investment
With its dual structure, fish farmers can manage cyclical expenses and simultaneously build long-term assets — all under a single, streamlined credit card.
Loan Features & Benefits
A. Loan Portfolio
- Overdraft: Ideal for regular costs such as fingerlings, feed, labor, and utilities
- Term Loan: Meant for investments — pond creation, aeration equipment, nets, transport vehicles
B. Loan Size & Tenure
- Loan amount: ₹5 lakh–₹25 lakh, ideal for mid-sized fish farms
- Tenure: Up to 5 years; overdraft can be renewed annually
C. Interest Rates
- Overdraft: 16.99% per annum
- Term Loan: 18.99% per annum
- These rates remain competitive compared to traditional agritech or informal credit methods
D. Eligibility & Security
- Applicant age: 18–75 years (with legal heir co-applicant required if above 60)
- Land requirement: Minimum 1 acre of irrigated land dedicated to fish farming
- Security: Hypothecation of mortgaged assets; mortgages required for loans above ₹2 lakh
E. Processing Speed
- Overdrafts and small loans (≤ ₹2 lakh): ~7–14 days
- Full credit facility: ~21 days after documentation
(Source: Ujjivan pisciculture FAQs)
Practical Impact on Fish Farmers
A. Working Capital Relief
Overdraft lets farmers access cash for daily necessities — feed, labor, electricity — without liquidating assets or relying on informal credit.
B. Infrastructure Capability
Term loans enable investments in aerators, pond liners, or transport vehicles — increasing yield and reach.
C. Cycle-Aligned Repayment
With flexible repayment terms that match harvest schedules, farmers can repay after revenue realization, reducing repayment pressure.
D. Transparent & Accessible
Ujjivan SFB’s doorstep service, minimal documentation, and clear interest rates reduce friction and dependency on informal lenders.
How It Stacks Against Other Fisheries Schemes
A. KCC (Kisan Credit Card) for Fisheries
Provides up to ₹2 lakh with subsidized interest, mainly for short-term needs. It’s limited but complementary to KPC for larger investments
B. PM Matsya Sampada Yojana (PMMSY)
Offers infrastructure grants and insurance — ideal for pond-building and processing unit development.
C. Other Bank Schemes
Often simpler, less comprehensive, and with lower ticket sizes (~₹2 lakh), lacking the holistic KPC model.
Before You Apply: Key Considerations
- Land & Legal Clarity
Ensure your land is properly documented and irrigated — it’s the first eligibility hurdle.
- Business Plan Preparation
A clear project report helps justify loan needs, especially for infrastructure.
- Repayment Strategy
Factor in production cycles and ensure your repayment plan matches your cash flow.
- Collateral Understanding
Loans over ₹2 lakh require assets against hypothecation or mortgage. Budget accordingly.
- Compare Alternatives
Match the KPC’s interest and structure against KCC and PMMSY benefits to make an informed choice.
Step-by-Step Application Guide
- Approach: Contact Ujjivan SFB’s local agri branch or authorized field officers.
- Document Submission: Provide KYC, land records, project proposal, income proof.
- Loan Assessment: Bank verifies land, project feasibility, and creditworthiness.
- Sanction & Disbursal: Funds are granted against overdraft and term loan limits.
- Utilization & Monitoring: Use overdraft for operations; invest term loan as per plan.
- Repayment & Renewal: Overdraft is renewed annually; term loans repaid over 1–5 years.
Final Thoughts
For Karnataka’s aquaculture entrepreneurs, the KPC pisciculture scheme offers a comprehensive credit framework — combining working capital flexibility, infrastructure investment, and structured repayment. It stands out by covering the full cycle of fish-farming operations, under a transparent and accessible model.
If you’re a fish farmer in Karnataka with at least one acre of irrigated land, this scheme warrants serious consideration. Talk to your nearest Ujjivan SFB branch or visit their website to assess how this loan can help scale your operations.
Take action now! Prepare your documentation, compare other fisheries schemes, and ensure your growth journey is bank-funded, not stress-funded.
