The Kisan Credit Card scheme provides farmers with timely and affordable credit for agricultural needs such as crop cultivation, equipment purchase, and working capital. It offers flexible repayment options, low interest rates, and simplified access to institutional credit to support farmers and reduce reliance on informal lenders.
Benefits Offer Under the Scheme
- Easy access to credit for farmers to meet crop cultivation and allied expenses.
- Low interest rates, Credit to farmers at 7% p.a. often with interest subvention for timely repayment, effective rate of interest 3% p.a. Limit Rs 3 lakhs.
- Flexible repayment options aligned with harvest and income cycles.
- Covers multiple needs including seeds, fertilizers, pesticides, irrigation, and other working capital.
- Includes allied activities like dairy, fisheries, and animal husbandry.
- Insurance coverage against crop failure and natural calamities (in some cases linked schemes apply).
- No need for frequent loan applications-credit can be used as a revolving cash facility.
- Simplified documentation and quick processing through banks.
- ATM-cum-debit card facility for easy withdrawal and transactions.
- Reduced dependence on informal moneylenders, promoting financial inclusion.
Eligibility
- Farmers engaged in agriculture, including: owner cultivators, tenant farmers, oral lessees, and sharecroppers.
- Self-Help Groups (SHGs) or Joint Liability Groups (JLGs) of farmers.
- Farmers involved in allied activities such as dairy, fisheries, poultry, and animal husbandry.
- Should have cultivable land or a valid farming arrangement (ownership or lease).
- Must meet bank-specific creditworthiness criteria, including repayment capacity and credit history.
Application Details
- Visit a bank branch (commercial bank, regional rural bank, or cooperative bank) or apply online through the bank's website.
- Fill out the KCC application form with personal, land, and crop-related details.
- Submit required documents such as identity proof, address proof, land ownership/tenancy documents, and passport-sized photographs.
- Provide details of crop pattern and financial requirements for assessment of credit limit.
- Bank verification and appraisal of eligibility, creditworthiness, and land records.
- Sanction of credit limit based on farming needs, cropping pattern, and repayment capacity.
- Issuance of KCC card (often ATM-cum-debit card) for withdrawing funds.
- Activation and usage of the card for agricultural and allied expenses.
- Periodic review and renewal of the credit limit by the bank, usually every 3-5 years.
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