The scheme was launched by the Government of India To fulfill the credit requirement for farmers in some necessary fields such as agriculture, fisheries, and animal husbandry sectors.
The scheme helps farmers to avail short term loan, and provide them some credit limit that helps them to purchase equipment, and helps them to meet their other many expenses.
The KCC scheme saves Indian farmers from the high rate of interest charged by the local money lenders.
Crop insurance and collateral-free insurance is also provided to the farmers under the KCC scheme.
Under the KCC scheme, farmers can repay their loans depending on the harvesting period of their crop for which the loan was given.
Features, and Benefits of Kisan Credit Card
- With the help of the scheme, Farmers are given credit for meeting their financial requirements of agricultural and other allied activities along with post-harvest expenses.
- Under the KCC scheme, farmers can take out a loan of up to ₹ 3 lakh.
- Banks will not seek security on loans up to ₹ 1.60 lakh under the KCC scheme.
- The Interest rate offered on the loan may go as low as 2.00%.
- Under the scheme, Insurance coverage provides to the KCC scheme holders up to ₹ 50,000 in the case of permanent disability or death.
- A cover of ₹ 25,000 is given in the case of other risks under the scheme to the KCC scheme holder.
- Eligible farmers will be issued a savings account with an attractive rate of interest along with the smart card and a debit card in addition to the Kisan Credit Card (KCC).
- Credit is available for a period of up to 3 years and repayment can be made once the harvest season is over.
- Farmers are charged a simple rate of interest when they make prompt payment.
- Compound interest is charged when cardholders fail to make timely payments.
Eligibility of KCC scheme
KCC loan is provided to anyone who is engaged in agriculture, allied activities, or other non-farming activities. Following is the detailed criteria to be eligible for the KCC loan:-
- The Minimum Age is 18 years, and the Maximum Age is 75 Years to avail the benefit of the scheme.
- In case a borrower is a senior citizen (age more than 60 years), a co-borrower is mandatory where the co-borrower should be a legal heir.
- Tenant farmers, oral lessees, and sharecroppers, etc.
- Self-help groups (SHG) or joint liability groups including tenant farmers
- Farmers involved in the production of crops or allied activities such as animal husbandry along with non-farm activities such as fishermen.
Documents Required to Apply for KCC loan scheme
- Duly filled-in and signed-in application form.
- Copy of identity proof such as Aadhaar card, PAN card, Voter ID, driving license, etc.
- Copy of address proof document such as Aadhaar card, PAN card, Voter ID, driving license. The proof should have the applicant’s current address to become valid.
- Land documents.
- A passport size photograph of the applicant.
- Other documents such as security PDC as requested by the issuing bank.
How to apply for the KCC loan scheme
- Visit the website of the bank you wish to apply for the KCC scheme.
- From the list of options, choose the Kisan Credit Card.
- On clicking the option of ‘Apply’, the website will redirect you to the application page.
- Fill the form with the required details and click on ‘Submit’.
- On doing so, an application reference number will be sent.
- If you are eligible, the bank will get back to you for the further process within 3-4 working days.
- 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.