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.
Benefits and Eligibility Criteria for the KCC Scheme
The features of the Kisan Credit Card Scheme is as follows:
- Farmers will meet their financial requirements along with any expenses incurred during the post-harvest season
- A loan of Rs.3 lakh can be sanctioned and produce marketing loans can be obtained
- 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.
- The farmers eligible for the KCC scheme will issued a savings account with affordable interest rates
- The KCC scheme will facilitate a hassle free disbursement procedure and a flexible repayment loans
- No collateral will be required for loans that amount up to Rs. 1.6 lakh
- For a period of 3 years, credit will be available and repayment can be made post the harvest season.
- There are certain subsidies and schemes offered by the government regarding interest rate. Availing these subsidies is dependent on the repayment history and general credit history of the cardholder.
- Fees and other such as processing fees, land mortgage deed charges etc would be at the discretion of the issuing bank.
- Limit to be fixed on the basis of operational land holding, cropping pattern and scale of finance.
- The Card has a validity of 5 years post which it will be subject to an annual review. In case of a good credit score, the card limit would be further extended to include rising costs, incidental expenses or change in cropping pattern etc
- Rescheduling of loans and conversions will be permitted in case of any damage to crops due to an unforeseen event like natural calamity etc.
Eligibility Criteria to Apply for KCC
The farmers who apply for KCC have to ensure that they qualify a few eligibility criteria in order to apply for KCC. Here is the list of eligibility for KCC. Ensure that you fall under any one of the following categories.
- The farmer applying for KCC should reside or live in the same jurisdiction as that of the given bank.
- Farmers who are individuals or joint borrowers of the land on which cultivation happens.
- Cultivators as well as individual landowners.
- Farmers who are tenant farmers, croppers(shared croppers) of the cultivable lands, and ones who are on oral leases.
- Joint liability groups or self-help groups that are formed by tenant farmers or sharecroppers.
- The farmers who are applying should be able to raise a production credit of Rs. 5,000 or more.
- Farmers with a minimum age of 18 years and a maximum age of 75 years.
- If the borrower is more than 60 years of age, a co-borrower who is a legal heir is mandatory.
The eligibility of the Kisan Credit Card also extends to animal husbandry and fisheries.
- Marine fisheries – Owning a registered boat or a fishing vessel along with a license or permission for fishing in estuaries or the sea is mandatory.
- Inland fisheries and aquaculture – Self-help groups, JLGs, fish farmers, and women groups are eligible.
- Poultry – SHGs, JLGs, tenant farmers of rabbits, goats, sheep, birds, poultry, should have sheds that are either owned, elapsed, or rented.
- Dairy – JLGs, SHGs, dairy farmers, tenant farmers, and farmers should lease, own, 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 licence, etc.
- Copy of address proof document such as Aadhaar card, PAN card, Voter ID, driving licence. 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.
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How To Apply for the Kisan Credit Card
The application process for the Kisan credit card can be done online, as well as, offline.
Apply Through Online
- Visit the website of the bank you wish to apply for the kisan credit card 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.
Apply Through 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.