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 to provide short-term aricultural loans for the seasonal agricultural and allied sector’s needs (Fisheries, animal husbandry, etc,) like; the purchase of agriculture inputs (seeds, fertilizers, agrochemicals, etc.), maintenance, 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 lender of unorganized sectors/debt burden to crop season failure, Natural Calamities, etc.
Features of the Kisan Credit Card:
1) Validity: usually valid for 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 that 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 4 years or maybe more
6) Credit Limit: It broadly depends upon the lender’s terms and conditions and the credit score of the borrower
7) Collateral Requirement: Up to the loan amount of 1.6 lakh, the borrower does not any require collateral.
Benefits of Kisan Credit Cards;
1) A farmer can avail of a passbook for the withdrawal of cash from the bank and also get a checkbook with a credit limit of Rs 25,000.
3) Farmers 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 the 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 seasons, natural calamities or pest attacks under the Pradhan Mantri Fasal Bima Yojna (PMFBY)
Important Criteria for Availing the Kisan Credit Card:
Based on 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 Indian Residents only
3) The applicant must have their piece of land or may have had access to the specified land to perform agriculture or agricultural allied services.
4) He/she may be an individual farmer, a tenant farmer, a sharecropper, or oral lessees (pattedar in common language) in self-help groups (SHGs) or joint farmers liability groups (JLFGs), including the tenant farmers.
List of Documents Required for Applying for a Kisan Credit Card ;
The Common document requirements 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’s requirements; avoid overwriting and cuttings; don’t use abbreviations while you filling the application form; and 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 proofs:
3) Proof of residence: One valid residence proof is required; you may provide any one of the following proof
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: The number of photographs required of an individual or co-applicant may vary from 2 to 4 as per different bank requirements, but they must be very latest and identifiable.
Kisan Credit Card application procedure
1) Visit any nearest bank of your preference and ask for an application form from the 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 out the application form.
4) Visit the nearby bank branch and apply along with all the required documents.
5) The bank representative will provide all the important details to the applicant.
6) After approval of the loan amount, the KCC will be dispatched.
Kissan Credit Card can be used for the following activities:
3) Water-saving and water-conservation devices
4) Dairy, Poultry, Beekeeping, Sericulture, Fisheries, animals, and husbandry
6) Dryland farming
7) Contract farming
8) Plantation & horticulture
9) Agro-forestry
10) Seed production