The Kisan Credit Card (KCC) is a significant financial instrument introduced in India to aid the farming community. Launched in 1998, the KCC scheme was designed to provide farmers with financial assistance to purchase agricultural inputs and meet their production needs.
The scheme underwent a significant revision in 2004 to include long-term loans and working capital loans for agriculture and allied activities. In a recent development, the Reserve Bank of India has extended the KCC facility to farmers involved in animal husbandry and fisheries, thereby broadening its scope.
Contents
Kisan Credit Card Notification 2024
The Kisan Credit Card serves multiple purposes, each designed to support the financial needs of the farming community:
- Short-term credit: The KCC offers financial support for short-term credit needs associated with farming. This includes purchasing seeds, fertilizers, and other essential agricultural inputs.
- Post-harvest expenses: The KCC assists farmers in managing post-harvest costs such as storage, transportation, and marketing of the produce.
- Consumption needs: The KCC is structured to cater to the consumption needs of farmers and their families, ensuring they have sufficient funds for their daily necessities.
- Working capital: The KCC provides the necessary working capital for maintaining agricultural assets and executing agriculture-related activities. This encompasses funds for maintaining machinery, irrigation systems, and other farming infrastructure.
- Investment credit: The KCC fulfills investment credit needs for agriculture-related activities. This includes funds for diversification into allied activities or for modernizing agricultural practices.
Eligibility Criteria for Kisan Credit Card
The KCC is available to all categories of farmers. However, it is particularly beneficial for marginal and small farmers, who constitute more than 86% of farmers in India as per the Agricultural Census 2015-16. The eligibility criteria include:
- Individual Farmers
- Joint Borrowers
- Tenant Farmers
- Oral Lessees
- Sharecroppers
- Self Help Groups
- Joint Liability Group of Farmers
Required Documents for Kisan Credit Card
To apply for a Kisan Credit Card, the following documents are required:
- Identity Proof
- Address Proof
- Land Ownership Proof
- Income Proof
- Passport Sized Photo
- Application Form (Filled and signed)
- Agriculture Activity Detail
- Additional documents (if any)
Features of Kisan Credit Card
The Kisan Credit Card comes with several features:
- The KCC is usually valid for five years and must be renewed annually.
- The loan must be repaid after the crop is harvested and sold.
- It has a credit period of 12 months.
- The loan amount can be extended to four years or more in a bad crop season.
- The loan limit is determined by the lender’s terms and the farmer’s credit score.
Benefits of Kisan Credit Card
The Kisan Credit Card offers several benefits:
- A passport is provided for cash withdrawal from a bank account.
- A chequebook is issued with a credit limit of Rs 25,000.
- Farmers can purchase seeds, fertilizers, and other agricultural items using the loan amount.
- The bank interest rates are relatively low, averaging around 9%.
- The maximum loan limit offered is up to Rs 3 lakh.
- Farmers with good credit scores are eligible for a higher loan limit.
- Farmers with good credit scores also receive a subsidy on interest rates.
Kisan Credit Card Insurance
Cardholders can avail of insurance coverage through the National Crop Insurance Scheme for certain types of crop loans. They can also avail coverage in case of crop failure due to natural calamities or pest attacks. Personal accident cover is provided to cardholders below the age of 70 years.
Application Procedures
Numerous nationalised, cooperative, and regional banks are responsible for issuing Kisan Credit Cards. Before approval, the bank evaluates the applicant’s credit score. Additionally, the bank scrutinizes the applicant’s land ownership, cropping pattern, and income among other factors.
Online Application Process
- Visit the official website of the bank.
- Navigate to the ‘Cards’ section.
- Select ‘Kisan Credit Card’.
- Click on the ‘Apply’ option.
- Fill the online application form with all the relevant details.
- Click on the ‘Submit’ option to complete the application process.
Click the link to know more.
Abhilash, an exam specialist with a passion for education, writes comprehensive articles on exam results and admit cards. His expertise ensures students receive reliable information and useful tips to excel in their exams.