Kisan Credit Card Scheme

Kisan Credit Card Scheme

Farmers are the backbone of the country. However, they face most of the financial burden since they require a lot of money for farming. Although there are several credit cards and loan schemes available in India, most of them are of minimal value to the farmers. Therefore, the Indian government has come up with credit card schemes explicitly designed to benefit the farmers. These unique credit cards are called Kisan Credit Card or KCCs.

A brief description of KCCs

The KCC scheme was first launched in 1998 with its mission to provide farmers with short-term formal credit loans to the farmers. These loans can be availed by tenant farmers and owner cultivators to meet their agricultural needs. The loans came with attractive rates of interest, simplified application process and repayment process was designed based on harvesting season, thereby reducing the burden of the farmer’s debt.

Basic features of KCC

The essential features of KCC are designed to provide:

• Loan to meet the financial needs of agricultural and associated activities.
• Ancillary loan required for crop production and extra contingencies.
• Extra loan for investing in additional crop requirements like dairy animals, pump sets, irrigation facilities, etc.
• Credit to support marketing activities.
• Credit to support post-harvest expenditures.
• Insurance coverage like personal accident insurance scheme (PAIS) and asset insurance.

The Kisan credit card yojana also comes with certain salient features that will be beneficial for you to opt for a Kisan credit card loan:

• All farmers who are deemed eligible for the KCC will be issued a debit card cum smart card along with the KCC.
• One can use the credit card for any number of repayments, and withdrawals provided the total amount stays within the credit limit. One thing to be made sure is that the installments have to be repaid within 12 months.
• Based on the yearly performance, banks are responsible for determining the status and the validity of the existing KCC.
• Depending on the credit card usage record, the banks have the decretion to increase the credit limits to accommodate any increase in operation costs, changes in cropping patterns, etc.
• Rescheduling/conversion of loan, period of repayments is also permissible in cases of damage to crops as a result of natural calamities.

Benefits of KCC

There are several benefits associated with KCCs. Some of them include:

• Flexible repayment schemes
• Hassle-free and quick disbursement procedure
• Single credit term loan for all kinds of agricultural and additional requirements.
• Extra assistance during the purchase of seeds, fertilizers, as well as availing additional cash discounts from dealers.
• Credits are available to the farmers for a period of up to three years, with the option of repayment to be done once the harvest season is over.
• Minimal documentation is required.
• Fund withdrawal from the issuing banks comes with maximum flexibility. Funds can be withdrawn from any of the branches of the issuing branch in any part of the country.

Eligibility criteria for KCC

To obtain the benefits of a Kisan credit card, apply for one if you are eligible to do so. The eligibility criteria for KCC include:

• You need to own and cultivate your land as an individual farmer.
• You can also belong to a group or joint borrower, provided that the group is the owner-cultivator.
• You are a tenant farmer, sharecropper, or an oral lease.
• You are a joint liability group (JLG) or a self-help group (SHG) of farmers, sharecroppers, tenant farmers, etc.
• In terms of fisheries and animal husbandries, you can also apply for the KCC scheme if
  • Inland fisheries- you have to be a fish farmer or fisher, JLGs, SHGs, as well as women groups. As a beneficiary, you need to own or lease a pond, a tank, an open water body or a hatchery, etc.
  • Marine fisheries- you must own a boat or other water vehicle and must have the license to carry out fishing activities in estuaries and sea.
  • Poultry- you can be individual farmers, joint borrowers, JLGs, SHGs, and tenant farmers to own, lease, rent sheds for sheep, goats, rabbits, birds, poultry, etc.
  • Dairy- you can be a farmer, dairy farmer, JLGs, SHGs, as well as tenant farmers who own, rent, or lease sheds for dairy-related activities.

Documents required for KCC application

There are several KCC available, like to PM Kisan credit card and the SBI Kisan credit card. To apply for such Kisan credit cards, you need to arrange the following documents on your behalf:

• Duly-filled and signed application form
• Copy of identity proofs like PAN card, Aadhaar card, driving license, Voter ID, etc.
• Copy of attested address proofs like PAN card, Voter ID, Aadhaar card, etc. that has the evidence of the applicant’s current address.
• Documents related to land properties.
• Passport size photos.
• Additional documents like security PDC as required by issuing banks.

Steps for applying for Kisan credit card online

If you want to access the facility of Kisan credit card online, apply by following the below-mentioned steps:

• Check whether your bank of choice provides the option of applying for KCC online.
• If the bank provides the option, click on the ‘apply’ button.
• You will be directed to the subsequent application page.
• Fill in all the details as asked in the application portal.
• Upload the scanned copies of all the required documents as mentioned in the application page.
• Double-check for any errors on the application page and make changes accordingly.
• Click on the submit button.
• After this, you will get an application reference number, which you need to refer to when the bank calls you after they complete the verification and related processes. Once the verification and final steps are complete, the bank will send the credit card to your registered address.

These are some of the essential information that you need to know about the Kisan Credit Card scheme. If you wish to apply for one, check whether you fit in the eligibility criteria of your desired bank, prepare for all the documents, make the proper plan which you might need to present before the bank for the application process, apply by going through the procedure step-by-step, and then you will get the Kisan credit card. Once you get the credit card, make sure that you make the repayment process seriously to maintain a good record, which will enable you to apply for additional loans in the future.