Kisan Credit Card ( KCC); Features, Benefits, and Eligibility

Kisan Credit Card ( KCC) ; Features, Benefits and Eligibility

Kisan Credit Card ( KCC) ; Features, Benefits, and Eligibility

Kisan credit card ( KCC) is a Government of India scheme that has been launched with an objective to provide short term aricultural loans for the seasonal agricultural and allied sector (Fisheries, Animal Husbandry, etc,) needs like; Purchase of agriculture inputs ( seeds, fertilizers, Agrochemicals, etc.), Maintenence and purchase of farm equipment, to meet crop production and agri- marketing expenses.

 KCC scheme was introduced by the National Bank for Agriculture and Rural Development (NABARD) in 1998-99 to protect farmers from the high-interest rate charged by the lander of unorganized sectors/ Debt burden to the crop season failure, Natural Calamities, etc.

Features of the Kisan Credit Card ;

1) validity; Usually valid for a period of five years.
2) Renewable; It is renewed annually
3) Re-Payment; Loans are to be repaid after the crop harvest and Sale
4) Credit period; KCC has a credit period of 12 months. ( KCC is a kind of revolving cash credit facility it involves any number of withdrawals and repayments within a limit)
5) Loan Extension; In case of crop season failure the loan  may be further extended for the period of 4 years or maybe more
6) Credit Limit; It broadly depends upon lenders terms and conditions and the credit score of the burrower
7) Collateral Requirement; Up to the loan amount of 1.6 lakh burrower does not any require collateral.

Benefits of Kisan Credit Cards;

1) Farmer can avail a passbook for the withdrawal of cash from the bank and also gets a Cheque book with a credit limit of Rs 25,000.

2) Withdrawal can also be done through ATM/Debit cards.
3) Farmer can purchase, Seeds, fertilizers, agrochemicals. farm equipment etc. with the loan amounts.
4) KCC has low bank interest rates, at an average of around 9%.
5) Kisan credit card provides a maximum credit limit of Rs 3 lakh.
6) Farmers with good credit scores can avail themselves of higher credit limits.
7) KCC provides subsidies on interest rates to farmers with good credit scores.

Insurance Coverage Under KCC Scheme:

1) The KCC Cardholders below the age of 70 years get insurance coverage up to 50,000/- rupees under the personal accident Insurance Scheme (PAIS).
2) Cardholders can also get coverage for failed crop season or natural calamities or pest attacks under the Pradhan Mantri Fasal Bima Yojna (PMFBY)

Important Criteria for Availing the Kisan Credit Card  ;

On the basis of the following criteria, anyone can avail of the Kisan credit card provided by the different banks;

1) The eligibility age for the different agriculture loans is 18 to 70 years for an individual applicant In the case of the  Agriculture business group/agriculture Societies etc. the age of applicants should be  21 years at the time of application.

2) Kisan credit card facilities are  available for the Indian Resident only

3) The applicant must have their own piece of land or may have had the access to the specified land to perform agriculture or agricultural allied services.

4) He/she may be an individual farmer or a tenant farmer or a Share Cropper or oral lessees ( Pattedar in common language) or Self-help groups(SHGs) or Joint Farmers Liability Groups(JLFGs ) including the tenant farmers also

List of Documents Required for Applying for a Kisan Credit Card ;

The Common document requirement to avail of an agricultural Loan under the different schemes are as follows;
1) Application form; It should be properly filled as per the lender requirements, avoid overwriting and cuttings, don’t use the abbreviations while you filling the application form, Tag all the documents in a representable manner.
2) Identity proof; 
One valid identity proof is required  you may provide any one of the following proof 

(a) PAN Card (b) Aadhaar Card (c) Passport
3) Proof of residence; 
One valid residence proof is required  you may provide any one of the following proof 
(a) Aadhaar Card (b) Passport (c) Utility Bills; like electricity bills, landline or postpaid mobile bills/, LPG bills /, Bank communication documents, etc.

4) Land documents; like registration documents, taxes paid, and utility bills
5) No due certificate; from Co-operative Credit Society (If required)
6) Land Agreements Record; Copy of the land sale agreement/lease agreement
7) Bank Statement; Last six months bank statement (If required)
8) Passport size photograph; Number of photographs required of an individual or co-applicant may vary 2 to 4 as per different bank requirements but it must be very latest and clearly identifiable.

Kisan Credit Card application procedure

(A) Offline Procedure;
1) Visit any nearest bank of your preference and ask for an application form from Kisan Credit Card Section or You may download the application form from the official site of the bank and take a print of it.
3) Properly fill the application form.
4) Visit the nearby bank branch and submit the application along with all the required documents.
5) The Bank representative will provide  all the important details to the applicant.
6) After the approval of the loan amount, the KCC will be dispatched.
B) OnLine Procedure;
 1) Firstly Go to the official website of your bank.
 2) From the variously given option select the Kissan Credit  
      Card option.
 3) Now choose the option to apply and fill the application 
     form online with all the details  on the bank website
 4) Submit the application form After submission of the form 
     you will receive a reference number
 5) If you are eligible the bank will contact you within 3 to 4 working days.

Kissan Credit Card can be used for the following activities;

  1) Development of farmland
 2) Minor & micro-irrigation, drip irrigation
 3) Water-saving and water conservation devices
 4) Dairy,  Poultry, Beekeeping, Sericulture, Fisheries, Animal       and 
 5) Loans to Self Help Groups / Joint Liability, Groups
 6) Dryland farming
 7) Contract farming
 8) Plantation & horticulture
 9) Agro-forestry
 10) Seed production

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