In an attempt to financially assist farmers of the country, the Government of India launched the Kisan credit card (KCC) Scheme in the year 1998. Also known as the PM Kisan credit card Yojana, this scheme was created by the National Bank for Agriculture and Rural Development (NABARD) to provide farmers with credit cards.
The credit cards can be used by farmers to purchase seeds, pesticides, fertilisers, and more on short-term credit. That’s not all. They can also use it to withdraw cash from ATMs for managing their agricultural expenses and avail loans.
In addition to the KCC scheme, the Indian government also launched the PM Kisan Samman Nidhi Scheme in the 2019 Interim Union Budget. Under this scheme, farmers are eligible to avail income support up to ₹6,000 every year.
To ensure that the income support is made available to all farmers, the Indian government brought the Kisan Samman Nidhi Scheme and the Kisan credit card Scheme together in Budget 2020. As a result, all beneficiaries of the Kisan Samman Nidhi Scheme have now become eligible to apply for a Kisan Card.
Borrowing from the unorganised sector usually attracts exorbitant interest on the sum borrowed. To protect farmers from this unwarranted financial pressure, the PM Kisan credit card was launched. This special credit card for farmers allows them to borrow funds at low interest rates.
That said, the rate of interest tends to vary from one issuing bank to another, with the average interest rates being around 7% per annum. That’s not all. The repayment period for the KCC card loan is also very flexible, as farmers can choose to start repaying once their produce is harvested.
Now that you’re aware of what Kisan credit cards are, let’s take a look at some of the top banks that offer this card and the various features and charges that come with it.
Bank |
Features and Charges |
Axis Bank Kisan Credit Card |
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SBI Kisan Credit Card |
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Central Bank of India Kisan Credit Card (Central Kisan Credit Card) |
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Union Bank of India Kisan Credit Card (Union Green Card) |
|
Wondering what the Kisan credit card benefits are? Let’s take a look at a few of the features and advantages that you get to enjoy.
Kisan credit card scheme available to farmers in agriculture and other allied activities
Eligible amount of loan may go up to ₹3 Lakhs or more in some cases
Hassle-free and quick loan disbursement process
Flexible loan repayment that can be done after the harvest season
Access to discounts as well as assistance when purchasing fertilisers, seeds, and more
Collateral-free borrowing if the loan amount is within ₹1.60 lakhs
Low interest rates on loans, with the average rate hovering around 7%
Discounts on interest rate for prompt repayments
Up to ₹50,000 insurance coverage against permanent disability or death
Insurance cover up to ₹25,000 for other risks
Kisan credit card available for meeting post-harvest expenses too
The rate of interest and other charges like processing charges and inspection charges can vary from one issuing bank to another. To get a good idea of what the rates and charges are, make sure to read through the terms and conditions of the Kisan Credit Card scheme offered by the bank thoroughly.
Before you go ahead with your application, it is important to first be aware of the Kisan credit card eligibility that you’re required to satisfy and the documents that need to be submitted. So, let’s take a look at both of these aspects.
To be eligible to apply for Kisan credit card, the applicant must be one of the following -
An individual borrower who is an owner cultivator
Joint borrowers who are owner cultivators
A tenant farmer
An Oral Lessee
A sharecropper
A Self-Help Group (SHG) or a Joint-Liability Group (JLG) of farmers
The list of documents that you’re required to submit as part of the application process are as follows. That said, be advised that the list of documents may vary from one bank to another.
A copy of your identity proof - PAN, Aadhaar, Passport, Driving Licence, or Voter’s ID
A copy of your address proof - Aadhaar, Passport, Voter’s ID, or Driving Licence
A duly-filled KCC scheme application form
A copy of the proof of landholding certified by the Revenue authorities
Two passport size photographs
Applying for the Kisan card is extremely easy. You can either choose to do it online or offline. Here’s a quick look at the process that you need to follow in both these cases.
Step 1: Visit the issuing bank’s website.
Step 2: Select ‘Kisan Credit Card’ from the list of credit card options on the website.
Step 3: Click on the ‘Apply’ button.
Step 4: Fill and submit the KCC application form along with the necessary documents.
That’s it. Your application will be processed and if found eligible, the card will be sent to your address within a few days.
Visit a branch of the issuing bank.
Get the PM Kisan credit card application form from the bank’s representative.
Fill the form and submit it along with all the necessary documentation.
Most issuing banks now allow you to check your Kisan credit card balance online. You can simply log into the issuing bank’s online portal and check your KCC balance. Alternatively, you can call your bank’s customer care and inquire about your Kisan credit card balance.
As per the Reserve Bank of India’s guidelines, there is no set KCC limit. In fact, lending institutions are free to sanction the amount they wish to, depending on their selection criteria. This may include taking into account the farmer’s monthly income, the cropped area and patterns, or both these aspects.
If you have any queries, grievances, or doubts regarding the Kisan credit card Yojana, you can always get in touch with the customer care to get them clarified.
If you wish to speak to Kisan credit card customer care, all that you need to do is call toll-free numbers - 155261 or 1800 115 526. Alternatively, you can also reach them by calling this number - 0120-6025109.
On the other hand, if you wish to register your KCC-related issues and grievances in writing, you can send an email to pmkisan-ict@gov.in
PM KCC Yojana is a Government of India initiative that aims to benefit farmers in agriculture, fisheries, and animal husbandry. It provides these farmers with short-term formal credit whenever they need it, using the funds available on the Kisan credit card. The interest rate against a KCC loan is low and the repayment process is flexible, which helps empower farmers.
If you have a Kisan Credit Card, you can visit the online website of your issuing bank and apply for the PM Kisan loan online. You need to fill in the KCC loan form with your Kisan credit card details and the amount you wish to borrow. Once the loan is processed, you would be able to see the PM KCC loan details on your online dashboard.
The PM Kisan Credit Card scheme can be availed by an individual farmer or a group of farmers who are both owners and cultivators of the land. Farmers involved in allied activities too can avail the scheme. Even sharecroppers and tenant farmers are eligible for availing a PM Kisan credit card loan.
If you’re an eligible individual, then the quickest way to get a KCC is by applying online. Here’s a quick look at the process that you would have to follow.
Visit the issuing bank’s website.
Select ‘Kisan Credit Card’ from the list of credit card options on the website.
Click on the ‘Apply’ button.
Fill and submit the KCC application form along with the necessary documents.
The Kisan card can be used to meet -
Short-term cash credit and capital requirements of farmers
Post-harvest expenses
Marketing expenses of produce
Working capital requirements of farmers
Consumption requirements of farmer households
All scheduled commercial banks, Regional Rural Banks (RRBs), and state co-operative banks are eligible to issue a Kisan Credit Card.
Yes. All Kisan Credit Cards offer cash withdrawal and cash advance facilities. All that you need to do is visit an ATM and use the card to withdraw cash. That said, keep in mind that you will be levied interest on such cash advances.
The following individuals are eligible to apply for the PM Kisan Credit Card Yojana.
An individual borrower who is an owner cultivator
Joint borrowers who are owner cultivators
A tenant farmer
An Oral Lessee
A sharecropper
A Self-Help Group (SHG) or a Joint-Liability Group (JLG) of farmers
According to RBI regulations, banks are free to offer collateral-free loans up to ₹1 lakh in the case of non-tie-up applicants, and up to ₹3 lakhs in the case of tie-up applicants. For loans exceeding these amounts specified above, banks are free to insist on a collateral.
The validity period is for five years under the Kisan Credit Card Scheme. The kind of activity you intend to perform with the money will determine the length of tenure you receive for your Kisan Card.