Kisan Credit Card (KCC) Scheme

Kisan Credit Card is a scheme launched by the Government of India to save farmers from high-interest rates generally charged by money lenders in the unorganized sector. The lowest interest rate can be 2.00% under this scheme. In addition, the repayment period depends on the harvesting or marketing period of the crop for which the loan amount was taken. Different subtleties are given underneath.

Features and advantages of the Kisan Credit Card

The reasonable interest rate at 2.00% (through subsidy)

Collateral free loans up to Rs. 1.60 lakh

The crop insurance scheme is likewise provided to farmers

Following Insurance inclusion is provided:

Up to Rs. 50,000 against Permanent Disability and Death
Up to Rs. 25,000 is provided against different risks

The repayment period depends on the harvesting and marketing period of the crop for which the loan amount was taken out

Loan amount up to Rs 3 lakh can be taken out by the cardholder

Collateral isn't needed on loans up to Rs 1.60 lakh

Farmers get a good interest rate on the savings in their Kisan Credit Card Account

Straightforward interest rate is charged as long as the client makes prompt payment. Something else, the compound interest rate gets pertinent

Top Banks Offering Kisan Credit Cards in India

The Kisan Credit Card scheme was set by NABARD (National Bank for Agriculture and Rural Development) and has been trailed by all the significant banks in India. Top banks that offer KCC are:

State Bank of India

State Bank of India is probably the biggest guarantor of Kisan Credit Cards. The interest charged on SBI Kisan Credit Card can be the lowest at 2.00% per annum on loans up to Rs 3 lakh.

Punjab National Bank

PNB Kisan Credit Cards are one of the most mentioned credit cards. The application cycle is very simple and users can expect quick disbursal post processing.

HDFC Bank

HDFC Bank Kisan credit cards offer loans at an interest pace of around 9.00%. Most extreme credit limit that is offered is Rs. 3.00 lakh. Check book with credit breaking point of Rs. 25,000 is additionally given. Besides, in case a farmer experiences crop failure then they can get an expansion as long as 4 years or more. Insurance inclusion is likewise provided against crop misfortune in light of natural calamities or pest attacks.

Axis Bank

Axis Bank Kisan Credit Cards offer loans charging interest rate beginning from 8.85%. Notwithstanding, they provide loans at an interest rate lower than this in accordance with government subvention schemes.

Besides this there are different banks that likewise offer Kisan credit cards. These are:

Bank of India
Indian Overseas Bank
Odisha Gramya Bank
Bangiya Gramin Vikas Bank

Interest Rate

The interest rate on KCC fluctuates from bank to bank. In any case, most banks provide Interest subvention loans in accordance with the Government Schemes where the interest charged can be as low as 2.00%.

Kisan Credit Card Eligibility Criteria

All farmers who are either individuals/Joint borrowers of the land and engaged with farming or allied activities

Individuals who are proprietor cum cultivators

All the Tenant farmers or Oral lessees and Share Croppers in the land of agriculture

Self Help Groups or Joint Liability Groups including tenant farmers or sharecroppers

Farmers should be qualified for a production credit of Rs.5,000 or more, and afterward he/she is qualified for a KCC

All such farmers who are qualified for short term credit loan towards crop production or any allied activities just as non-farm activities

The farmers should be living (staying) in bank's operational area

Documents Required For KCC

Individuals who need to benefit a Kisan Credit Card should submit set up their identity and address. Candidate can submit any of the underneath given documents.

Identity Proof : PAN card, Aadhaar card, Driver's License, Passport, Voter's ID, Overseas Citizen of India Card, Person of Indian Origin Card, Job card gave by NREGA, Letters gave by the UIDAI

Address Proof : Aadhaar card, Driver's License, Passport, Utility Bill not over multi month's old, Ration Card, Property Registration Document, Person of Indian Origin Card, Job card gave by NREGA, Bank Account Statement

Besides this, the bank will likewise require passport size photographs, and whatever other document that it considers fit.

Process to Apply for Kisan Credit Card

Online

Farmers who need to benefit KCC online can undoubtedly do as such by following the beneath given advances:

Visit the particular bank's website and check for their Kisan Credit Card Section

Download and print the Application form

Appropriately round out the Application form

Submit the application and fundamental documents at the closest bank's branch

The loan officer will share the essential information with the candidate

When the loan amount is endorsed the card will be dispatched

Customers can begin utilizing the credit card once they get the KCC.

Branch Visit

Farmers looking for Kisan Credit Card can likewise visit a bank of decision and connect with a bank official. The official will help the candidate in rounding out the form. Thereafter, the loan officer will share the fundamental subtleties and cycle the application.

(Also Read: Banking Ombudsman Scheme)

How Does a Kisan Credit Card Work?

Kisan Credit Cards are not the same as the standard unsecured credit card. The workings of KCC are distinctive as well. They work in the accompanying way.

Client should visit the bank and afterward apply for a Kisan Credit Card

The loan officer will at that point decide on the loan amount that will be given to the candidate. It can go up to Rs. 3.00 lakh

When the amount has been endorsed, client will be given the bank's Kisan credit card

Cardholder would now be able to buy items against the constraint of credit broadened

The interest rate will be material on just the amount of credit taken

Ideal payment will guarantee that negligible interest rate is applied on the loan taken out

KCC offers dynamic loan to the cardholder. This implies that client can apply for a line of credit amount according to their necessities against a most extreme credit limit. This will guarantee that they don't need to pay a huge interest related with a big principal amount.

Kisan Credit Card – FAQs

What is a Kisan Credit Card Loan?

Kisan Credit Card loan is the scheme launched by the Government of India under NABARD that aims to offer farmers loans at low interest rates. The interest rate after subsidy can go as low as 2.00%. This will guarantee that the farmers don't fall into obligation traps or miss out on developing crops.

How is Kisan Credit Card Loan amount determined by the bank?

The loan amount that is reached out to the cardholder is decided by the loan officer at the hour of application. Different components are thought about like farm area, costs identified with farming, consumption, and so forth.

What security/collateral will the bank demand to endorse the loan amount?

Banks won't demand security or collateral as long as the loan amount is not as much as Rs. 1.60 lakh. Past that, banks can request security that it considers fit. Collateral can be through giving over the crops for which the loan was taken out or different assets like tractors, trolleys, etc.

What is the tenure of the loan that can be assumed out by means of Kisan Acknowledgment Card?

The greatest tenure can be 5 years.

What interest rate will be applied on the loan amount assumed through a Kisan praise card?

Interest rate may depends upon the person applying for the loan. To get an idea, customers can check the table given below :

Interest Rate at the time of submitting Application - 4 % per annum
Interest Rate for Prompt Payment - 3% per annum
Interest Rate in case of Late Payment - 7% per annum

Do take note of that the interest charged will change from case to case premise and will be subject to the bank dispensing the amount.

What are the variables in ascertaining the credit furthest reaches of the Kisan Credit Card?

The underlying credit limit on the card is offered based on:

Land area, crop sown, and so on
Pre and post-harvest consumption and household requirements.
Different Expenses needed for the maintenance of crop and farm assets which incorporates crop insurance just as Personal Accident Insurance Scheme

How Might I apply for this credit card?

If you are qualifying the criteria for this card, you can either apply online or get an application form by visiting the closest bank branch or NABARD office. The application form for Kisan Credit Card (KCC) in Hindi is additionally accessible for farmers who can't get English.

What are the incentive and waivers accessible on these credit cards?

Banks at their own discretion don't need collateral security as long as the loan amount is under Rs.1.60 lakh

Kisan Credit Card (KCC) Scheme - Advantages, Interest Rates, Eligibility & Process for Applying