Kisan Credit Card Scheme

The Kisan Credit Card (KCC) Scheme was introduced by the Government of India in 1998 to offer farmers timely credit. Administered by the NABARD (National Bank for Agriculture and Rural Development), the KCC Scheme was launched with the objective of providing farmers with short-term loans. 

 

Catering to the needs of farmers engaged in agriculture, animal husbandry, and fisheries, the scheme provides easy credit to meet farming needs. By offering short-term loans and a live credit limit, the KCC scheme helps farmers purchase equipment, develop their lands, and meet other agricultural expenses. With short-term KCC loans available against 7% interest, the Indian Government helped shield farmers from local money lenders and create formal channels of pocket-friendly credit.

All commercial banks in India are eligible to issue the Kisan Credit Cards. Farmers can also get this facility at regional rural banks and cooperative banks. Check out some of the top banks in the country that offer the Kisan Credit Card, and the different features and charges associated with it. 

The Kisan Credit Card Scheme was introduced to offer easy credit to farmers. Here’s a list of features and benefits the card offers:

 

• The KCC Scheme offers farmers access to timely credit to meet working capital requirements. Funds can be used for cultivation expenses including the purchase of agricultural equipment and inputs, machine repairs, etc. Maintenance expenses like land development costs as well as allied expenses made towards children’s education or family functions are also covered by the scheme. 

• Depending on their preference, farmers can choose to opt for cash credit or term loans. Moreover, farmers can repay the loan flexibly depending on the crop harvest and marketing periods.

• Keeping the cost of borrowing low, the Kisan Credit Card Scheme offers credit at a low interest rate of around 7%. 

• Apart from pocket-friendly interest rates, farmers get an added incentive of 3% interest subvention for prompt payments. This interest subsidy is applicable to loans up to ₹3 Lakhs that are cleared within a year. 

• Farmers opting for short-term KCC loans of up to ₹1.60 Lakhs can get the amount sanctioned without pledging collateral. 

• The eligibility parameters and documents required for the KCC Scheme are quite elementary. This, along with the hassle-free application process ensures easy access to credit. Moreover, Kisan Credit Cards come with quick sanctions, and timely disbursals, helping farmers promptly meet their needs. 

• The card comes with a free accidental insurance cover of up to ₹50,000 payable on the death or permanent disability of the farmer. Additionally, an insurance cover of ₹25,000 is applicable on all other risks. 

• Additionally, crop insurance coverage for notified crops under the Pradhan Mantri Fasal Bima Yojana.

Knowing the eligibility checklist and documents required for KCC can help streamline the application process. To check whether you qualify for KCC, you can go through the following  sections: 

 

1. Eligibility Criteria for KCC

 To apply for the Kisan Credit Card Scheme, you must be: 

• An individual/ joint borrower who is an owner cultivator. 

• A tenant farmer/shared cropper/Oral Lessee.

• A Self-Help Group or joint-Liability Group of shared croppers, tenant farmers, etc. 

 

2. Documents Required for KCC 

If you meet the above-mentioned eligibility criteria, you can apply for the Kisan Credit Card Scheme with the following set of documents:

• A duly filled Kisan Credit Card application form

• Two passport-size photographs

• A valid ID proof like your PAN Card, Aadhaar Card, Passport, Driving License, or Voter’s ID 

• A valid address proof like your PAN Card, Aadhaar Card, Driving License, etc. 

• Certified landholding proof by relevant revenue authorities. 

• Cropping pattern with acreage details. 

• Security documents will be needed for loans above 1.6 Lakhs or 3 Lakhs (as applicable).

• Any other document mandated by the bank. 

Apart from the Kisan Credit Card eligibility criteria mentioned above, to opt for a loan against your card, you must meet the following parameters: 

 

• Minimum age for eligibility: 18 years. 

• Maximum age for eligibility: 75 years.

• For senior citizen applicants above 60 years of age, a co-borrower (who is also their legal heir) must be listed. 

 

While KCC interest rates and processing fees are bank-specific, here’s a quick look at the current rates:

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. 

 

1. Online Application Process 

• 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. 

 

2. Offline Application Process 

• 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