The Kisan Credit Card (KCC) is a programme that the Indian government offers to farmers in order to meet their short-term financial needs and particular credit needs. The KCC programme was developed by the National Bank for Agriculture and Rural Development (NABARD) and debuted in 1998. It was created to give farmers access to short-term credit and term loans so they could easily buy various agricultural inputs including seeds, fertilizer, and pesticides as well as access cash for their immediate production needs.
All Indian banks, rural regional banks, and co-operative banks offer the KCC. In order to streamline the procedure and facilitate the issue of "Electronic Kisan Credit Cards," this scheme was further changed in 2012.For farmers who often are not familiar with banking procedures and formalities, it provides an easy verification and credit delivery process.
Key Features of Kisan Credit Card (KCC)
Gives farmers access to sufficient and timely credit through a single point of contact.
Flexible and straightforward method with easy documentation.
Five years are allowed for KCC use.
All KCC borrowers are provided with a Rupay debit card that can be used to access ATMs and withdraw money.
The National Payments Corporation of India (NPCI) introduced RuPay, an Indian plastic card that enables digital payments at all banks and financial institutions in the country.
Both cash withdrawals and loan applications may be made through the KCC.
Farmers that have a solid payback record get a greater credit limit.
Based on the crop time, which may be short or lengthy, and the crop's selling period, the repayment period is determined.
Permits rescheduling of repayment in the event that crops are harmed by a natural disaster like a fire or flood.
Offers protection against accidental death, incapacity, and loss of limbs or sight, up to INR 50,000.
When using a tie-up arrangement, no collateral is needed for loans up to INR 1.60 lakh and INR 3 lakh.
After receiving a fully submitted application, the KCC must be issued within 14 days.
Who is Eligible for the Kisan Credit Card ?
Owner-cultivators are either individual farmers or joint farmers.
Either an oral lessee, a tenant farmer, or sharecroppers.
Mutual aid societies (MAS) or joint liability societies (JLG).
In addition to farming, farmers engage in non-farming activities like fishing and allied industries like poultry, dairy, and animal husbandry.
The co-borrower requirement applies to seniors over 60 years of age, and the minimum admission age ranges from 18 to 75.
Documents Needed to Apply for Kisan Credit Card
Application form that has been properly completed and signed.
Aadhaar, PAN, voter ID, a driver's licence, and other identity documents are examples.
A document proving your address, such as your driver's licence, voter ID, or PAN card.
Land-related legal records.
Picture the size of a passport.
Other Factors Affecting Kisan Credit Card Interest Rates
In general, loans up to INR 3 lakh are provided at a 7% interest rate.
In accordance with the Reserve Bank of India (RBI) programme, several banks provide an interest subsidy of 2-3% on loans up to INR 3 lakh.
In addition to the subsidy provided under the RBI system, certain banks also provide additional interest subsidies up to 3%, particularly for farmers with strong credit ratings.
Banks set the interest rate for loans worth more than 3 lakh INR.
In the event that regular payments are missed or delayed, there will be higher interest payments because interest is compounded every six months.
How to Apply for a Kisan Credit Card?
Visit your local bank branch or download the KCC scheme form from the websites of all scheduled commercial banks, the Department of Agriculture, Cooperation & Farmers Welfare website (www.agricoop.gov.in), and the PM-KISAN portal (www.kisan.gov.in).
A one-page form that just asks for the fundamental information, a copy of the land register, and information on the crops sown must be filled out.
The bank issues the Kisan Credit Card following an assessment of the application and supporting documentation.