Kisan Credit Card Loan Scheme
The Kisan Credit Card scheme is a Government of India scheme which provides farmers with timely access to credit. The Kisan Credit Card (KCC) scheme was launched in 1998 with the aim of providing short-term formal credit to farmers and was created by NABARD (National Bank for Agriculture and Rural Development).
The KCC scheme was introduced to ensure that the credit requirements for farmers in the agriculture, fisheries and animal husbandry sector were being met. This was done by helping them avail short-term loans and provide them with a credit limit to purchase equipment and for their other expenses as well.
Moreover, with the help of KCC, farmers are exempt from the high interest rates of the regular loans offered by banks as the interest rate for KCC starts as low as 2% and averages at 4%. With the help of this scheme, farmers can repay their loans depending on the harvesting period of their crop for which the loan was given
Know All About Kisan Credit Card
- Key Features of Kisan Credit Cards
- Eligibility Criteria to Apply Kisan Credit Cards
- Documents Required for Kisan Credit Cards
- Application Process for Kisan Credit Cards
- Top Banks offering Kisan Credit Cards
- Frequently Asked Questions (FAQs)
Features and Benefits of Kisan Credit Card
- Farmers are given credit for meeting their financial requirements of agricultural and other allied activities along with post-harvest expenses.
- Investment credit for agricultural requirements such as dairy animals, pump sets etc.
- Farmers can take out a loan of up to Rs.3 lakh and also avail produce marketing loans.
- Insurance coverage for KCC scheme holders up to Rs.50,000 in the case of permanent disability or death. A cover of Rs.25,000 is given in the case of other risks.
- Eligible farmers will be issued a savings account with attractive interest rate along with smart card and a debit card in addition to the Kisan Credit Card.
- Flexible repayment options and hassle-free disbursement procedure.
- Single credit facility/ term loan for all agricultural and ancillary requirements.
- Assistance in the purchase of fertilizers, seeds, etc. as well as in availing cash discounts from merchants/ dealers.
- Credit is available for a period of up to 3 years and repayment can be made once the harvest season in over.
- No collateral will be required for loans amounting up to Rs.1.60 lakh.
Interest and Other Charges on Kisan Credit Cards
The interest rate on the KCC differs from one bank to other along with its credit limit. However, the interest rate of KCC can be as low as 2% and averaging at 4%.
In addition, there are certain subsidies and schemes that the government offers farmers with regard to the interest rate. These would depend on the repayment history and general credit history of the cardholder.
Other fees and charges such as processing fees, insurance premium (if applicable), land mortgage deed charges etc. would be set at the discretion of the issuing bank.
Eligibility Criteria for Kisan Credit Card Loan Scheme
The eligibility criteria for the KCC scheme are as follows:
- Any individual farmer who is an owner-cultivator.
- People who belongs to a group and are joint borrowers. The group has to be owner-cultivators.
- Sharecroppers, tenant farmers, or an oral lessee are eligible for the KCC.
- Self-help groups (SHG) or joint liability groups (JLG) of sharecroppers, farmers, tenant farmers, etc.
- Farmers involved in the production of crop or allied activities such as animal husbandry along with non-farm activities such as fishermen.
Eligible beneficiaries under this scheme under fisheries and animal husbandry are:
- Inland Fisheries and Aquaculture: Fish farmers, fishers, SHGs, JLGs, and women groups. As a beneficiary, you must own or lease any activity related to fisheries. This includes owning or leasing a pond, an open water body, a tank, or a hatchery among others.
- Marine Fisheries: You own a registered boat or any other type of fishing vessel and you have the necessary license or permissions for fishing in estuaries or the sea.
- Poultry: Individual farmers or joint borrowers, SHGs, JLGs, and tenant farmers of sheep, rabbits, goats, pigs, birds, poultry, and have sheds they have owned, rented, or leased.
- Dairy: Farmers, dairy farmers, SHGs, JLGs, and tenant farmers who own, lease, or rent sheds.
Documents Required to Apply for KCC Loan Scheme
- Duly filled-in and signed-in application form.
- Copy of identity proof such as Aadhaar card, PAN card, Voter ID, driving license, etc.
- Copy of address proof document such as Aadhaar card, PAN card, Voter ID, driving license. The proof should have the applicant’s current address to become valid.
- Land documents.
- A passport size photograph of the applicant.
- Other documents such as security PDC as requested by the issuing bank.
Application Process for the Kisan Credit Card
The application process for the Kisan credit card can be done online, as well as, offline.
Online
- Visit the website of the bank you wish to apply for the KCC scheme.
- From the list of options, choose the Kisan Credit Card.
- On clicking the option of ‘Apply’, the website will redirect you to the application page.
- Fill the form with the required details and click on ‘Submit’.
- On doing so, an application reference number will be sent.
- If you are eligible, the bank will get back to you for the further process within 3-4 working days.
Offline
Offline applications can be done by visiting the branch of the bank of your choice or by downloading the application form from the website of the bank as well. The applicant can visit the branch and begin the application process with the help of the bank representative. Once the formalities are done, the bank’s loan officer can help with the loan amount for the farmer.
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