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What is the Kisan Credit Card (KCC) Scheme?
Kisan Credit Card is a system that helps farmers to work efficiently without depending on unconventional banks for debts. In 1988, Reserve Bank of India (RBI) and NABARD introduced this scheme to help farmers. One can get this scheme from most cooperative banks, rural banks, and other public sector banks. With the help of this scheme, the farmers get great access to short-term financial standing. They may require money for various reasons such as harvesting, crop cultivation, etc.
Objectives of the Kisan Credit Card Loan
The farmers have to depend on some non-institutional money lenders to get some money for their agricultural work. When it comes to banks for taking loans, the process is very lengthy. Thus, the farmers trust some local money lenders who offer money with high-interest rates. Hence, the farmers have to suffer from paying a huge interest to a lender monthly. To prevent this situation, the KCC loan was introduced. KCC allows farmers to get access to quick loans without much interest.
Features of the Kisan Credit Card
- Farmers of all categories such as small farmers, sharecroppers, marginal farmers, and tenants, etc. can apply for this credit card.
- Kisan credit card involves a simple screening procedure and loan process for farmers to understand easily. It needs one-time documentation and all such methods depend on the farmer’s declaration of crops for growing in fields.
- Most of the urban-centric credit schemes involve a lengthy procedure for credit evaluation, but this scheme doesn’t involve such a procedure. This scheme decides the kisan credit card loan limit based on the credit history of the farmers, income, and lands of farmers.
- With the simple documentation procedure, the KCC provides a timely credit.
- Farmers can use this scheme either to make loans or to withdraw money.
- The scheme offers a flexible repayment mode after the harvest season or one can reschedule in the event of the bad crop season.
- One can link this card to the savings account; hence it needs a single account.
- The KCC provides good insurance coverage.
- For all your agricultural needs, the KCC offers a good credit facility.
Benefits of Kisan Credit Cards
- The KCC acts as a single credit facility for all agricultural requirements of farmers.
- One can repay the loan amount after the harvesting, which makes it flexible for farmers.
- One can get access to credit for up to 3 years and repayment is flexible.
- The documentation procedure is simple, and one can get good flexibility to withdraw funds from the authorized banks.
- One can withdraw the funds from any branches of banks across India.
- It offers lower interest rates when compared to other credit card loans.
- The KCC involves hassle-free disbursement.
Eligibility Criteria for a Kisan Credit Card Loan Scheme
To apply for this loan, one has to meet the below kisan credit card eligibility conditions.
- The minimum applicant age is 18 years whereas the maximum age is 75 years.
- An individual farmer who is an owner and cultivator of the land can apply for this KCC.
- Farmer belongs to a group and can borrow this credit as joint borrowers. But the group should be an owner-cultivators.
- An individual can be a fisherman to apply for this KCC scheme.
- People in Animal Husbandry work can apply for this KCC.
- An individual can be a sharecropper or oral lessee.
- A tenant of the land, who is managing the cultivation of crops in that land can apply for this scheme.
- If you are a joint liability group (JLG) or self-help group (SHG) of farmers, sharecroppers, and tenant farmers, you can apply for this KCC loan.
Documents required to apply for Kisan Credit Cards
According to the Reserve Bank of India (RBI), applicants require certain documents to apply for KCC loans. Some banks may require other documents that will differ from one bank to another bank. But to get a kisan card, apply online with the following documents.
- Submit the duly filled-in and signed-in application form
- Original and xerox copies of identity proof such as PAN card, Aadhar card, driving license, Voter ID, etc
- Photocopies of address proof documents such as PAN card, Aadhar card, driving license, and Voter ID. The address proof should have the current address of the applicant
- Land ownership documents or rental agreement of the land
- Passport size photograph
- Some banks may ask you documents like Security PDC, etc
How to Apply for Kisan Credit Card Online?
Go to kisan credit card online, apply the below-mentioned steps.
- Visit the official bank website to apply for a kisan card online.
- You will get the list of credit cards, from which choose the ‘Kisan Credit Card’.
- Now, click the kisan card online ‘Apply’ button.
- You will get an application page, where you need to fill the accurate details.
- After filling the mandatory fields, click on the Submit button.
- Once you finish this process, the system will provide you an application reference number. Note this number for future queries.
- If you are eligible for this KCC loan, the bank will process your application, and call you within 3 to 4 working days. Bank officials will inform you further steps to avail KCC card.
How to Apply for Kisan Credit Card Offline?
If you can’t apply for a kisan credit card online, you can follow the below steps to a kisan credit card apply offline.
- Visit the nearest authorized bank and get the application form for the KCC.
- Visit the official website of any banks, where you can also download and print the application form.
- After getting the kisan credit card form, you can fill out the mandatory details in the fields.
- After checking your form twice, you can apply to the bank along with needed documents like land documents.
- The bank officer will provide all the necessary information to you about KCC.
- Once the bank sanctions your loan amount, you will get the Kisan Credit Card.
How does the Kisan Credit Card Work?
The Kisan Credit Card is a credit card that looks like a regular ATM card, which one can use at ATMs, banks. The bank will issue a passbook to you, once you get this credit card. Your passbook includes all details such as credit limit, landholding, validity, and address. The KCC allows farmers to get agricultural benefits such as growing crops, meet other needs such as fertilizers, electricity, seeds, pesticides, and diesel charges. With the help of this KCC credit, farmers feel it easy to do various activities such as land development, drip irrigation or buying equipment, etc.
How to use the Kisan Credit Card (KCC)?
- Farmers having a credit limit of more than Rs. 25,000 get benefit with a cheque book, provided by the bank. One can use this to withdraw money.
- Farmers can make use of kisan credit cards to withdraw money.
- Farmers can withdraw money through withdrawal slips.
How to avail of a Kisan Credit Card (KCC)?
The procedure to get this kisan credit card loan is very simple. The farmer should visit the nearest bank and request this KCC scheme. Now, the bank checks the various details of the farmer such as credit history, income getting from the land, etc. If the bank finds the applicant eligible for KCC, then the bank issues KCC to an applicant. Based on the guidelines of RBI, the bank sets the interest rates, credit limit, and repayment modes, etc.
How much loan amount can we get under KCC?
Banks provide farmers, a short-term loan of maximum limit up to Rs. 3 lakhs under the kisan credit card yojana. To get more than Rs. 1 lakh, farmers have to accept for mortgaging the land or crops to the bank.
KCC Loan Interest Rate
KCC loan facility helps Indian farmers to meet the agricultural needs using the credit of this loan. This scheme provides a 3% subsidy on the credit amount of Rs. 3 lakhs. Banks such as public sector banks, cooperative banks, rural banks of India, and other top banks namely SBI, AXIS Bank, ICICI, and Bank of India, etc. offer this KCC loan to farmers. Based on the requirements of the farmers, banks offer both short-term and long-term loans to Indian Farmers. This KCC credit card works like a credit card and debit card as well. Farmers can avail of the loan of maximum Rs. 3 lakhs at a kisan credit card loan interest rate of 7%. When the farmers manage to repay the loan before the due date, then the banks provide another 3% rebate. This means the interest rate reduces to 4% from 7%. One can also use a kisan credit card interest rate calculator to calculate the kcc interest rate.
KCC Credit Limit
The income that you earn from agricultural sources decides your maximum credit limit or kisan credit card loan limit under the KCC scheme. The credit limit starts from Rs. 25,000 for farmers under normal conditions. You will get credit for 3 years at a kisan credit card interest rate of 7% p.a
What is covered under KCC?
- Avail a loan amount at a cheap interest rate of 7% p.a.
- Expenses required for post-harvesting
- Working capital to manage agricultural activities and farms
- Credit for land development, drip irrigation, plantation, pump sets, etc
- Requirements related to farmers’ consumption
Banks offering Kisan Credit Cards
Since the Kisan Credit Card is a Government of India scheme, various public sector banks offer this KCC scheme. Such banks include
- Cooperative Banks
- State Bank of India (SBI)
- National Payments Corporation of India (NPCI)
- Industrial Development Bank of India (IDBI)
- National Bank for Agriculture and Rural Development (NABARD)
Other banks which offer this kisan credit card yojna include:
- Axis Bank
- Bank of India
- Punjab National Bank
- Indian Overseas Bank
- ICICI Bank
- HDFC Bank
- Other rural banks
|Bank||Credit Limit||Number of Years||Insurance Coverage|
|Axis Bank||Farmers can get up to Rs. 250 lakhs||For cash credit – 1 year
For term loans – 7 years
|Bank of India||Farmers can get up to 25% of the farmer’s income. This will not exceed Rs. 50,000||N/A||N/A|
|State Bank of India||Depends on crop cultivation
|5 years|| Asset insurance,
Crop insurance, etc.
|ICICI Kisan Credit Card||Depends on RBI guidelines||5 years||Depends on RBI guidelines|
|HDFC Bank||Maximum up to Rs. 3 lakhs||5 years||Personal Accident Insurance Scheme (PAIS)|
FAQs on Kisan Credit Card
Q1: What is the main benefit of this KCC Scheme?
Ans: The Government of India offers farmers a loan of up to Rs. 3 lakhs at low-interest rates under KCC Scheme.
Q2: Who are recently added beneficiaries under this KCC?
Ans: Fisheries and animal husbandry workers in addition to farmers can get benefit under this KCC.
Q3: How to apply for KCC Scheme?
Ans: One can apply for this KCC Scheme either through online or offline. Visit the official website of the bank to apply for this KCC.
Q4: Is there any official website to apply for KCC?
Ans: There is no particular website to apply for this KCC, but one has to visit the official website of the related bank.
The Bottom Line:
The Kisan Credit Card Scheme helps farmers to avoid taking loans from non-institutional money lenders for their agricultural needs. With the help of this scheme, it is easy for farmers to avail of this loan with few documentation steps. Most banks offer this scheme to farmers, and the credit helps farmers to meet various agricultural needs. Also, the kisan credit card loan interest is low in this KCC Scheme, thus farmers feel it easy to make repayments.