Farmers get easy access to credit through the Indian government’s Kisan credit Card scheme. In order to provide farmers with short-term formal loans, NABARD (the National Bank for Agriculture and Rural Development) created the Kisan Loans Card (KCC) program, which was launched in 1998. The KCC plan was created to guarantee that the credit needs for farmers in the agricultural, fishing, and animal husbandry industries were satisfied. This was done by offering them short-term loans and a credit limit that they could use for both equipment purchases and other expenses.
Features and Benefits of Kisan Credit Card
- Farmers are rewarded for completing their financial obligations for farming, other related activities, and post-harvest costs.
- Investment financing for agricultural necessities like dairy cows, pump sets, etc.
- Farmers are eligible for loans up to Rs. 3 lakh as well as loans for produce marketing.
- Holders of KCC schemes are covered by insurance up to Rs. 50,000 in the event of death or permanent incapacity. In the event of other hazards, a cover of Rs. 25,000 is provided.
- In addition to the Kisan Credit Card, qualified farmers will also receive a savings account with a competitive interest rate, a smart card, and a debit card.
- Flexible alternatives for repayment and a simple payout process.
- All agricultural and related needs can be met by a single credit facility or term loan.
- assistance in getting monetary discounts from retailers or dealers as well as assistance with the purchase of fertilizer, seeds, etc.
- After the harvest season is over, credit can be repaid over a period of up to three years.
- For loans totaling Rs. 1.60 lakh, no collateral is needed.
Interest and Other Charges on Kisan Credit Cards
The KCC’s credit limit and interest rate vary from one bank to the next. However, the typical interest rate at KCC is between 2% and 4%. In addition, the government offers a variety of programs and incentives to farmers that are linked to interest rates. They would be determined by the cardholder’s overall credit history and payment history. Any additional fees and charges, such as processing costs, insurance premiums (if applicable), costs associated with land mortgage deeds, etc., may be established by the issuing bank.
Eligibility Criteria for Kisan Credit Card Loan Scheme
The following are the requirements for participation in the KCC program:
- any lone cultivator that farms on their own.
- individuals who are both joint debtors and members of a group. The group must consist of owner-farmers.
- The KCC is open to tenant farmers, sharecroppers, and oral lessees.
- Self-help groups (SHG) or joint liability groups (JLG) comprised of farmers, tenant farmers, and sharecroppers, among others.
- Farmers engaged in agricultural cultivation or related pursuits like animal husbandry, as well as non-farm pursuits like fishing.
Beneficiaries who qualify under this program for fisheries and animal husbandry include:
- Inland Fisheries and Aquaculture: SHGs, JLGs, fish growers, and organizations for women. To be a beneficiary, you must own or rent any fisheries-related business. Owning or leasing a pond, an open body of water, a tank, or a hatchery are just a few examples.
- Marine Fisheries: You own a registered boat or other fishing vessel and are in possession of the necessary estuary or ocean fishing permits or licenses.
- Poultry: Individual farmers, joint borrowers, SHGs, JLGs, and tenant farmers of sheep, rabbits, goats, pigs, birds, and poultry who also own, rent, or lease sheds are all considered to be farmers.
- Dairy: Farmers who own, lease, or rent sheds, include dairy farmers, tenant farmers, SHGs, and JLGs.
Documentation Needed to Apply for the KCC Loan Program
- properly completed and signed application form.
- a copy of an identity document, such as a driver’s license, voter ID, PAN card, or Aadhaar card.
- A copy of a document proving your address, such as your driver’s license, voter ID, or PAN card. The applicant’s present address must be included in the documentation for it to be accepted.
- Land documents.
- a photo of the applicant the size of a passport.
- additional documents, such as security PDC upon the issuing bank’s request.
Applying for a Kisan Credit Card
Both online and offline applications for the Kisan credit card are accepted.
- Step 1: Go to the bank’s website to apply for the Kisan credit card program.
- Step 2: Select the Kisan Credit Card from the list of available alternatives.
- Step 3: The website will bring you to the application page after you select the “Apply” option.
- Step 4: Complete the form with the necessary information, then click “Submit.”
- Step 5: After doing so, a reference number for your application will be issued.
- Step 6: The bank will contact you for the next steps if you are approved within 3 to 4 working days.
By visiting the bank branch of your choice or downloading the form from the bank website, you can submit an offline application. The applicant can visit the branch and begin the application process with help from a bank employee. The bank’s loan officer can help the farmer with the loan amount if all the prerequisites are met.
PM Kisan Samman Nidhi Scheme
The Indian government has introduced the PM Kisan Samman Nidhi Scheme, under which all farmers are eligible to receive income support of up to Rs. 6,000 annually. This project had been planned and made public during the interim 2019 Indian Union Budget. Following the publication of the Budget 2020, the government is now ensuring that institutional finance is more readily available to all of our nation’s farmers. By combining the Kisan Credit Card (KCC) Scheme and the Kisan Samman Nidhi Scheme, this is accomplished. A Kisan Credit Card is now available to all Kisan Samman Nidhi Scheme recipients.
Longer Repayment Period for Kisan Credit Card (KCC) Loans
The majority of Indian banks that provide Kisan Credit Card (KCC) loans are seeking lengthier loan repayment terms. Given the intense pressure on the agriculture industry, this has been proposed. It has been suggested that the 12-month loan cycle under the Kisan Credit Card program be prolonged to 36 or 48 months. This was suggested at the West Bengal state-level bankers’ consultation meeting.
The banks have also suggested allowing farmers to obtain further loans even after defaulting on the last loan, in addition to lengthening the loan repayment period. However, they must service the interest in order to achieve that. In response to the Department of Financial Services’ directives, public sector banks recently began a three-stage consultation process.
The consultation process would primarily be used to discuss 9 significant issues. These include lending to MSMEs and the agricultural sector, online banking, direct welfare transfers, and student loans. The prior meeting was held among banks themselves. But this time, there will be a state-level inter-bank gathering.
How to Apply for Kisan Credit Card under PM Kisan Samman Nidhi Scheme
You can follow these procedures to apply for a KCC Loan under the PM Kisan Samman Nidhi Scheme:
- A one-page form that is accessible on the websites of all commercial banks must be filled out.
- You must enter all of your essential data, including crop sown and land record.
- The Common Service Centers (CSC) must receive this form before they can distribute it to all banks.
Top Kisan Credit Cards by Banks
|Credit Card||Credit Limit||Maximum Tenure|
|Axis Kisan Credit Card||Up to Rs.2.50 lakh (in the form of a loan against the card)||Up to 1 year for cash credit Up to 7 years for term loans|
|BOI Kisan Credit Card||Up to 25% of the farmer’s estimated income (but not exceeding Rs.50,000)||N/A|
|SBI Kisan Credit Card||Based on the crop cultivation and cropping pattern||5 years|
|HDFC Kisan Credit Card||Credit limit of up to Rs.3 lakh||5 years|
Kisan Credit Card Customer Care
Contact the Kisan Credit Card Customer Care if you have any questions or complaints about the KCC.
How to Check Kisan Credit Card Balance
You can apply for a KCC at any bank that provides these, and the process is currently completed online. To check the balance on your Kisan Credit Card, you must contact the bank’s customer care division. You can also check the balance on your Kisan Credit Card by going to the bank’s website.