What is Kisan Credit Card yojna ?

Kisan Credit Card yojna ?

Kisan Credit Card Scheme is a scheme of the Government of India which provides timely loans to the farmers. Kisan Credit Card (KCC) scheme was launched in 1998 with the objective of providing short-term formal loans to farmers and was created by NABARD (National Bank for Agriculture and Rural Development).

KCC yojana was launched to ensure that the credit requirements of farmers in agriculture, fisheries and animal husbandry sectors are being met. This was done by helping them obtain short-term loans and providing credit limits for purchasing equipment and their other expenses. Moreover, with the help of KCC, farmers get exempted from the high interest rates of regular loans offered by banks as the interest rates for KCC start from 2% and average at 4%. With the help of this scheme, farmers can repay their loan based on the harvesting period of their crop for which the loan was given.

Kisan Credit Card – Features and Benefits :

  • Loans are given to farmers to meet post-harvest expenses as well as financial requirements of agriculture and other allied activities.
  • Investment loan for agricultural needs like dairy animals, pump sets etc.
  • Under this, farmers can take loan up to Rs 3 lakh and can also get produce marketing loan.
  • KCC Yojana provides insurance coverage of up to Rs 50,000 for holders in case of disability or death. In case of other risks, KCC yojana holders are given a cover of Rs 25,000.
  • Under this scheme, apart from Kisan Credit Card, eligible farmers will also be issued a savings account with attractive interest rate along with smart card and debit card.
  • The plan also features flexible repayment options and a hassle-free disbursement process.
  • Single loan facility/term loan is given to KCC yojana holders for all agricultural and allied needs.
  • Loans in this scheme are available for a period of up to 3 years and can be repaid at the end of the crop season.
  • In this scheme, no collateral will be required for loans up to Rs 1.60 lakh.

Interest rate on Kisan Credit Card:

The interest rate on KCC varies from bank to bank along with its credit limit. However, KCC interest rates can be as low as 2% and average 4%.

Apart from this, there are also some subsidies and schemes that the government provides to the farmers regarding the interest rate. All these subsidies and schemes depend on the repayment history and general credit history of the cardholder.

Kisan Credit Card Eligibility:

The eligibility criteria or eligibility for KCC yojana are as follows:

  • Any individual farmer who is an owner-cultivator can avail the benefits of this scheme.
  • People who belong to a group and are joint borrowers. The owner of the group should be a farmer.
  • Sharecroppers, tenant farmers or oral lessees are eligible for KCC.
  • Farmers are also involved in allied activities such as crop production or animal husbandry as well as non-agricultural activities such as fishing.

Kisan Credit Card Required Documents:

  • Duly filled and signed application form.
  • Copy of identity proof like Aadhar Card, PAN Card, Voter ID Card, Driving License, etc.
  • Copy of address proof document like Aadhar Card, PAN Card, Voter ID, Driving License. The proof of address must contain the current address of the applicant to be valid.
  • Land documents.
  • One passport size photograph of the applicant.
  • Other documents requested by the issuing bank such as security PDC.

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