Kisan Credit Card is a scheme launched by the Central Government of India which allows the farmers to take loans at affordable interest rates and to save the farmers from the exploitation by the moneylenders in the unorganized sector.
On May 14, Finance Minister Nirmala Sitharaman announced Rs 2 lakh crore concessional credit boost to 2.5 crores farmers of India through Kisan Credit Cards. The concessional boost also covers Fisherman and Animal Husbandary farmers. This package will enable the farmers to gain access to institutional credit at an affordable interest rate.
Page Contents : How to Apply Online | Bank Link to Apply Online | Objectives | Key Features |
Who Can Apply | Required Documents | Loan Amount | Rate Of Interest | Covered In KCC |
How To Use KCC | Which Banks Offering KCC
How to apply online for Kisan Credit Card?
Have a look at the process to apply online for Kisan Credit Card:
Step 1: Visit the official website of bank - SBI/Axis Bank/PNB/Indian Overseas Bank/Bank of India/HDFC Bank/Others
Step 2: Search ‘Apply for KCC’ online & Download & Print Application Form
Step 3: Fill the KCC form completely
Step 4: Submit the filled form to nearest branch of the Bank
Step 5: Loan Officer will review your form, will issue application reference number
Step 6: Save the application reference number
Step 7: Once the loan is sanctioned, Kisan Credit Card will be dispatched
Direct Link to Apply Online for PM KISAN Credit Card
Objectives of the Kisan Credit Card (KCC) Scheme
Before the launch of the Kisan Credit Card Scheme; a large number of farmers used to depend on informal sources of credit like money lenders and relatives to purchase fertilizer, seeds, pesticides and other cultivation equipments. Main objectives of this scheme are;
1. To provide institutional credit to the farmers at the cheap rate of interest
2. To provide credit at the time of requirement
3. To support Post-harvest expenses
4. Working capital for maintenance of farm assets and activities allied to agriculture
5. Investment credit requirement for agriculture and allied activities (land development, pump sets, plantation, drip irrigation etc.)
6. Consumption requirements of farmers
Key Features of Kisan Credit Cards
- Offers Institutional Credit or Loan to Farmers to carry out agricultural activities
- Farmers get flexible loan repayment options
- Farmers can avail loan for a period of up to 3 years
- Kisan Credit Card holders can also enjoy benefits of National Crop Insurance Scheme & PM-KISAN
- Helps farmers in purchasing seeds, fertilizers, etc.
- Allows farmers to withdraw cash from the card
- Provides protection against loss of crops due to pest attack and natural calamities
Who can apply for Kisan Credit Card?
- Small & Marginal farmers
- Share croppers
- Fishermen
- People involved in Animal Husbandry
- Lessee and tenant farmers
- Self Help Groups (SHGs)
- Joint Liability Groups (JLGs)
- What is eligibility criteria for Kisan Credit Card?
- Individuals involved in farming and agricultural activities can apply for the KCC. Farmers who cultivate on the land of other people are also eligible to apply for the Card.
- The Age of applicant should be between 18 to 75 years.
Documents required to get KCC
1. Duly filled in application form
2. Identity proof- Voter ID card/PAN card/Passport/ Aadhaar card,/Driving License etc.
3. Address proof: Voter ID card/Passport/Aadhaar card/Driving license etc.
4. No dues certificate from the neighboring area’s branches of the banks.
5. Land documents
6. 2 passport size photographs
7. Documents asked by the bank
How much amount of loan can we get under Kisan Credit Card?
The farmers get the short term loan through Kisan Credit Card up to Rs. 3 lakh. To avail of the loan above Rs 1 Lakh, farmers need to mortgage the crops or his land.
What is Rate of Interest for loan under Kisan Credit Card?
Farmers get the loan of up to Rs 3 Lakh at reduced Interest Rate of 7%. If a farmer is able to repay the loan amount on due date; he or she get another 3% rebate. In this case, the effective Interest Rate becomes 4% only.
What is covered under Kisan Credit Card?
- Loan at cheap rate of interest
- Post-harvest expenses
- Working capital to maintain farm assets and agriculture-related activities
- Investment credit for plantation, drip irrigation, land development, pump sets, etc.
- Farmers' Consumption requirements
How can we use Kisan Credit Card?
Farmers can use the KCC card for purchasing seeds, pesticides, fertilizers, for doing payment to labourers, for wihtdrawal of cash and for purchasing agriculture related products and equipment. Farmers who have availed loan of Rs 25000 and above get Cheque Book along with the KCC.
Which Banks are offering Kisan Credit Cards?
- NABARD
- State Bank of India - SBI
- Axis Bank
- Punjab National Bank - PNB
- Indian Overseas Bank
- Bank of India
- HDFC Bank
- IDBI
