Kisan Credit Card Scheme| KCC Yojana| Apply online for Kisan Credit Card – The Kisan Credit Card scheme is a government of India initiative that gives farmers access to credit on a timely basis. Kisan Loans Card was introduced by NABARD (National Bank for Agriculture and Rural Development) in 1998 with the goal of providing farmers with short-term formal credit.
The KCC plan was designed to ensure that farmers in the agriculture, fishery, and animal husbandry sectors have access to loans. This was achieved by helping them in getting short-term loans and giving them a credit limit for the purchase of equipment as well as other expenses.
Furthermore, farmers who use KCC Cards are free from the high interest rates associated with traditional bank loans, while the interest rate for the Kisan Card starts at 2% and averages at 4%. In this Yojana farmers can repay their loans based on the harvesting season of the crop for which the loan was granted.
Kisan Credit Card Features & Benefits
- Farmers are rewarded for completing their financial obligations related to agriculture and related operations, as well as post-harvest expenses.
- Credit for agricultural needs such as dairy animals, pump sets, and so on.
- Farmers can get up to Rs.3 lakh in loans, as well as crop marketing loans.
- In the event of permanent incapacity or death, KCC Programme Kisans are covered up to Rs.50,000 in insurance coverage. In the event of other hazards, a cover of Rs.25,000 is provided.
- With this Kisan Card, Kisan will also get a savings account with a competitive interest rate, as well as a smart card and a debit card.
- Flexible repayment choices and a simple payout system are available.
- For everybody, a single credit facility/term loan is available.
- All agricultural and related needs can be met with a single credit facility/term loan.
- Under this scheme farmers will also get assistance on fertilizer, seed, and other purchases. This scheme will also help in obtaining monetary discounts from merchants/dealers.
- Credit is offered for up to three years, with repayment possible once the harvest season is through.
- For loans up to Rs.1.60 lakh, no collateral will be required.
Kisan Credit Card Interest Rates
The Interest Rate on a Kisan Credit Card varies depending on the loan amount and the bank that issued it. Let’s have a look at the KCC Interest Rate charged by different banks on loans of up to 3 lakhs to better understand this:
|Banks providing KCC||Kisan Credit Card Interest Rate|
|SBI Kisan Credit Card||Min. 7% p.a.|
|PNB Kisan Credit Card||Min. 7% p.a.|
|HDFC Bank KCC||Min. 9% p.a.|
|Axis Bank Kisan Credit Card||8.85% p.a.|
|Mahabank Kisan Credit Card||Min. 7% p.a.|
|Indian Overseas Bank KCC||7% p.a.|
|UCO Bank Kisan Credit Card||7% p.a.|
When it comes to the interest rate on the Kisan Card, there are a few things to keep in mind. The following are the details about the matter:
- On a loan amount of up to Rs. 2 lakh, cardholders can get a 2% interest subsidy.
- Cardholders that pay their bills on time receive an additional 3% interest discount.
- As long as the user pays the credit card bill on time, a basic interest rate is levied.
- Compound interest will be applied to credit card bills if payments are not made on a regular basis. This will result in a higher rate of interest being paid on the borrowed funds.
Kisan Credit Card Eligibility
The requirements for obtaining a Kisan Card are listed below.
- Tenant Farmers, Oral Lessees, and ShareCroppers: Individuals / Joint Borrowers who are owner cultivators
- Tenant farmers, sharecroppers, and other farmers form Self Help Groups (SHGs) or Joint Liability Groups.
- Age Requirement: 18 years
- Maximum Age: At the end of the loan term, you must be 75 years old.
How To Apply For Kisan Credit Card
KCC Online Application Method
You can apply for the Kisan Credit Card online on the bank’s website or by visiting the bank branch with the necessary documents.
Following are steps for online application of Kisan Credit Card:
- Visit the official website of the bank through which you want to apply for KCC Yojana.
- Find the option of ‘Kisan Credit Card’ among the list of credit cards or under agricultural products or services.
- Click on the “Apply” button; you will be redirected to an application form.
- Fill the form with all the required information accurately, and click on ‘Submit’.
- After the application is submitted, you will get a reference number from the system, take note of that number for future queries.
KCC Offline Application Method
To apply offline, go to a bank of your choice and speak with a bank representative. The official will assist the applicant in completing the Kisan Credit Card Application. After that, the loan officer will go over the essential information with you and process your application.
Documents to apply for a Kisan Credit Card (KCC)
A farmer has to submit some documents while applying for the Kisan Credit Card (KCC). List of required documents for Kisan Credit Card Application form:
- Kisan Credit Card application form, duly completed (KCC)
- Photographs of the applicant in passport size
- Proof of Identity(Any one): Voter ID cards, PAN cards, passports, Aadhaar cards, and driver’s licenses are just a few examples.
- Proof of address (anyone): Voter ID cards, passports, Aadhaar cards, and driver’s licenses are just a few examples.
- Submit land documents (optional) only if the bank requests them.
- One-time documentation when applying for finance, and then a simple declaration (about crops grown or intended) by the farmer (if required by the bank)
- Land Tax receipts, possession certificates, and other proof of ownership are all acceptable (if required by the bank)
- Documents relating to main and collateral security (if required by the bank)
- Income Documentation (if required by the bank)
Kisan Credit Card Validity (KCC Validity)
- Kisan Credit Card has a 5-year validity term. The banks have the option to extend the loan for up to three more years.
- Banks can find out how long a KCC is valid by conducting a periodic review, which is usually done once a year.
- Depending on the increase in cropping area/ pattern and performance of the borrower, the bank’s review may result in the facility being continued, the limit being increased, or the limit being canceled/withdrawn.
- When the bank extends and/or reschedules the repayment time due to natural calamities affecting the farmer, the period for determining whether the activities are adequate or not is also extended, along with the extended amount of limit.
- When a proposed extension lasts longer than one crop season, the total amount of debits for which the extension is authorized is transferred to a separate term loan account with a repayment schedule.
Useful Links for KCC Yojana
KIsan Credit Card FAQs
Q. What is a Kisan Credit Card?
The Kisan Credit Card (KCC) Yojana was developed to provide Kisan Credit Cards to farmers based on their holdings for uniform acceptance by banks so that farmers could easily purchase agriculture inputs such as seeds, fertilizers, pesticides, and draw cash for their production needs.
Q. Where is the Kisan Credit Card limit?
The Government of India (GoI) offers small farmers who possess KCC a loan of up to Rs 1.6 lakh with no collateral or guarantee.
Q. How does the bank determine the amount of a Kisan Credit Card Loan?
At the time of application, the loan officer determines the loan amount that will be provided to the cardholder. Various elements are taken into account, including agricultural land, farming expenses, consumption, and so forth.
Q. What is the tenure of the loan that can be taken out via Kisan Credit Card?
The maximum tenure can be 5 years.