In August, 1998 Indian public sector banks launched the Kisan Credit Card (KCC) program. With the introduction of the program, farmers would be able to obtain term loans and short-term credit to buy agricultural supplies such as insecticides, fertilizers, and seeds, as well as borrow money for pressing production needs. Drawing from the recommendations of the RV Gupta Committee, the National Bank for Agriculture and Rural Development (NABARD) developed the KCC model scheme. Working capital for farm assets and related operations, produce marketing loans, post-harvest expenses, and consumption necessities are also covered by the system. In order to expedite and streamline the issuance of electronic Kisan Credit Cards, the scheme was changed in 2012. All Indian banks, co-operative banks as well as regional rural banks provide the KCC program.
The Kisan Credit Card initiative intends to give farmers flexible and streamlined procedures along with sufficient and timely credit support from the banking system for their crop and other needs, as listed below:
1. To fulfill the needs for short-term loans necessary for crop cultivation
2. Costs incurred after harvest
3. Generate a marketing loan
4. Determine the home consumption needs of farmers
5. Working capital for agriculturally related activities and asset upkeep on farms
6. Requirement for investment finance in agriculture and related fields
Here are some of the key features and benefits of Kisan Credit Card Scheme:
● The farmers are provided credit to meet their financial requirements for all kinds of activities, along with post-harvest expenses.
● Credit is also provided for agricultural machines such as pumps or for cattle.
● Farmers can take a loan up to ₹3 lakh and also provides insurance coverage of up to ₹50,000 in case of any permanent disability or death.
● Certain eligible farmers are also issued a debit card and a savings bank account.
● There are multiple and flexible repayment options.
● Added assistance when buying fertilizers, pesticides, etc. as well as cash discounts from merchants.
● The credit can be repaid once the harvesting season is over.
● Credit is available for up to 3 years.
● No collateral is needed for loans amounting up to ₹1.6 lakhs.
1. Loan Amount Eligibility: Based on finance considering cropping pattern, acreage and scale of finance (SOF).
2. Interest Subvention /Incentives: for prompt repayment available as per norms.
3. Card Validity: Card should be normally valid for 5 years subject to annual review.
4. Annual Review: Might lead to continuation of the facility, enhancement of the limit or cancellation of the limit/withdrawal of the facility depending on performance of the borrower.
1. Minimum age-18 years.
2. Farmers – individuals /joint borrowers who are owner cultivators.
3. Tenant farmers, oral lessees and sharecroppers.
4. Self Help Group (SHGs) or Joint Liability group (JLGs) of farmers including tenant farmers, sharecroppers etc.
5. Each drawl to be repaid within a maximum period of 12 months.
– The facility of kisan credit cards has been extended to Fisheries and animal husbandry (including poultry farmers in 2018-19) budget to help them meet their working capital needs.
1. Application Form
2. Two Passport Size Photographs
3.ID proof such as Driving License / Aadhar Card / Voter Identity Card / Passport
4.Address Proof such as Driving License, Aadhar Card
5.Proof of landholding duly certified by the revenue authorities
6.Cropping pattern (Crops grown) with acreage
7.Security documents for loan limit above Rs.1.60 lakhs / Rs.3.00 lakhs, as applicable
Any other document as per sanction.
1.Visit the website of the bank you wish to apply for the kisan credit card scheme
2. From the list of options, choose the Kisan Credit Card
3. On clicking the option of ‘Apply’ the website will redirect you to the application page
4. Fill the form with the required details and click on ‘Submit’
5. 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
1.Offline applications can be done by visiting the branch of the bank of your choice or by downloading the website of the bank as well.
2.The applicant can visit the branch and begin the application process with the help of the bank representative.
You can either check the kisan credit card balance online, by logging in to the bank website or you can contact customer support for more details.
Visit this website for more info: www.farmer.gov.in
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