The Kisan Credit Card scheme is a Government of India scheme which provides farmers with timely access to credit. The Kisan Credit Card (KCC) scheme was launched in 1998 with the aim of providing short-term formal credit to farmers and was created by NABARD (National Bank for Agriculture and Rural Development).
The KCC scheme was introduced to ensure that the credit requirements for farmers in the agriculture, fisheries and animal husbandry sector were being met. This was done by helping them avail short-term loans and provide them with a credit limit to purchase equipment and for their other expenses as well.
Moreover, with the help of KCC, farmers are exempt from the high interest rates of the regular loans offered by banks as the interest rate for KCC starts as low as 2% and averages at 4%. With the help of this scheme, farmers can repay their loans depending on the harvesting period of their crop for which the loan was given.
The interest rate on the KCC differs from one bank to other along with its credit limit. However, the interest rate of KCC can be as low as 2% and averaging at 4%.
In addition, there are certain subsidies and schemes that the government offers farmers with regard to the interest rate. These would depend on the repayment history and general credit history of the cardholder.
Other fees and charges such as processing fees, insurance premium (if applicable), land mortgage deed charges etc. would be set at the discretion of the issuing bank.
The eligibility criteria for the KCC scheme are as follows:
Eligible beneficiaries under this scheme under fisheries and animal husbandry are:
The application process for the Kisan credit card can be done online, as well as, offline.
Offline applications can be done by visiting the branch of the bank of your choice or by downloading the application form from the website of the bank as well. The applicant can visit the branch and begin the application process with the help of the bank representative. Once the formalities are done, the bank’s loan officer can help with the loan amount for the farmer.
The PM Kisan Samman Nidhi Scheme was launched the Indian government and under this scheme, all farmers can avail up to Rs.6,000 every year as their income support. This initiative had been curated and announced during the 2019 Interim Union Budget of India
Post the release of the Budget 2020, the government is now making sure that institutional credit is more accessible to all farmers of our country. This is being done by bringing together the Kisan Credit Card (KCC) Scheme and the Kisan Samman Nidhi Scheme. All beneficiaries under the Kisan Samman Nidhi Scheme can now get a Kisan Credit Card.
The Government of India has announced that it will start paying the 9th instalment under the PM Kisan Samman Yojana to the enrolled farmers from 9 August 2021. Under the PM Kisan Samman Nidhi scheme, the central government grants each registered farmer Rs 6000 per year to help them improve their financial situation. The Centre distributes Rs.6,000 in three Rs.2,000 instalments over the course of a year. Farmers get each instalment around four months apart. The first instalment is typically sent between 1 April and 31 July, the second instalment between 1 August and 30 November, and the third instalment between 1 December and 31 March.
Most of the banks in India which offer the Kisan Credit Card (KCC) loans are looking for a longer loan repayment tenure for the loans. This has been suggested as the agriculture sector is under significant pressure. The cycle of the loans provided under the Kisan Credit Card scheme has been proposed to be increased to 36 or 48 months from the 12 months. This was proposed at the state level bankers’ consultancy meet in West Bengal.
In addition to the enhancement of the loan repayment tenure, the banks have also proposed that the farmers should be allowed to avail extra loans even after failing to repay the previous loan. However, in order to do that, they should service the interest. Public sector banks have started a 3-stage consultation process recently on the basis of the directions passed by the Department of Financial Services.
The main focus of the consultation process would be to discuss 9 important issues. These include credit offered to MSMEs and agriculture sectors, digital banking, direct transfer of benefits, and education loans. The previous meeting was an intra-bank meet. However, this time the meeting will be an inter-bank meet at a state level.
If you want to apply for a KCC Loan Scheme under the PM Kisan Samman Nidhi Scheme, you can follow these steps:
|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|
In case you have any queries or grievances regarding KCC, you can always contact the Kisan Credit Card Customer Care.
You can apply for a Kisan Credit Card from any bank that is issuing KCCs and this process has now been made online. In order to check your Kisan Credit Card balance, you need to contact the customer care of the bank from where you have gotten the Kisan Credit Card. You can also log into the bank's portal and check the balance of your Kisan Credit Card via the website.
Crop loans provide farmers with necessary credit to help them meet their working capital needs. KCC is a type of crop loan that banks offer. However, the KCC loan can be used for a number of other purposes and not just to meet working capital requirements.
This validity period is 5 years. The tenure you do get depends on the type of activity you plan to use the money for.
You should me a minimum of 18 years of age and be a maximum age of 75 years. If you are a senior citizen, then it is mandatory to have a co-borrower who is a legal heir.
The interest rate will be left to the discretion of the bank. However, according to the KCC circular dated 20 April 2012, the interest rate is 7% p.a. on short-term credit with a Rs.3 lakh upper limit on the principal amount.
The credit limit offered on a KCC Loan Scheme for the initial year is based on:
Yes, revolving cash credit facility is available on these cards for an unlimited number of withdrawals and repayments made within the credit limit.
To check the balance in your Kisan Credit Card account, you will have to contact the customer service centre of the public sector bank that has provided you with the Kisan Credit Card. Alternatively, you can visit the bank's branch to check the balance in your account.
Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.