Full formBanking & Finance
KLPstands forKisan Loan Passbook
Full Form of KLP
What is KLP?
KLP stands for Kisan Loan Passbook, a document issued by banks in India to farmers who avail agricultural loans. It serves as a comprehensive record of loan transactions, including disbursements, repayments, interest charges, and outstanding balances. The KLP is primarily used in rural and semi-urban areas where farmers rely on institutional credit for crop production, purchase of inputs, or allied activities. It is part of the government's push to formalize agricultural lending under Priority Sector Lending guidelines. Public sector banks, regional rural banks, and cooperative banks issue KLPs to ensure transparency and easy tracking of loan accounts. The passbook is often linked to the Kisan Credit Card (KCC) scheme, simplifying the borrowing process. In Indian banking exams, questions on KLP appear under topics like agricultural finance, rural banking schemes, and priority sector advances. Understanding KLP helps students grasp how small and marginal farmers access credit without collateral, promoting financial inclusion and rural development.
KLP का फुल फॉर्म
किसान ऋण पासबुक
Example
The farmer submitted his KLP at the bank branch to update the transaction history after repaying the first installment of his crop loan.
KLP — frequently asked questions
What is the full form of KLP?
The full form of KLP is Kisan Loan Passbook, a document that records agricultural loan transactions for farmers in India.
How is KLP different from a Kisan Credit Card (KCC)?
KLP is a passbook that records loan details, while KCC is a credit card that provides revolving credit; they are often used together for agricultural financing.
Which banks issue KLP in India?
Public sector banks, regional rural banks, and cooperative banks issue KLP to farmers as part of priority sector lending schemes.