Kisan credit card

Kisan Credit Card (KCC) Latest Information

The Kisan Credit Card (KCC) is a special credit card scheme introduced in India to provide farmers with timely and adequate credit. It aims to help farmers meet their agricultural and related needs, including crop production expenses, post-harvest expenses, and consumption requirements.

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Kisan Credit Cards simplify the loan application process for farmers, offering them a flexible and convenient credit system. The scheme is typically implemented by financial institutions and cooperatives, allowing farmers to access credit easily and manage their farming activities more efficiently.

Features of Kisan Credit card (KCC) Credit Card

The Features for the Kisan Credit Card are as follows:

  • Simplified Loan Application Process.
  • Timely and Adequate Credit Provision.
  • Addressing Agricultural and Related Needs.
  • Coverage of Crop Production Expenses.
  • Support for Post-Harvest Expenses.
  • Facilitation of Consumption Requirements.
  • Implementation by Financial Institutions and Cooperatives.
  • Enhancing Farmer Access to Credit.
  • Flexible and Convenient Credit System.
  • Efficient Management of Farming Activities.

Eligibility Criteria for Kisan Credit Card

The eligibility criteria for the Kisan Credit Card are as follows:

  • Individual or joint borrowers who own and cultivate land.
  • Tenant farmers, oral lessees, and sharecroppers.
  • Self-Help Groups (SHGs) or Joint Liability Groups (JLGs) comprising farmers, including tenant farmers and sharecroppers.

Documentation needed for obtaining a Kisan Credit Card

  • Application Form.
  • Two Passport Size Photographs.
  • Identification proof like Driving License, Aadhar Card, Voter Identity Card, or Passport.
  • Address Proof such as Driving License or Aadhar Card.
  • Certified proof of landholding by revenue authorities.
  • Details of cropping pattern (Crops grown) with acreage.
  • Security documents for loan limits exceeding Rs.1.60 lakhs or Rs.3.00 lakhs, as applicable.
  • Additional documents as required per sanction.

Steps to Apply for Kisan Credit Card

online:-

  • Navigate to the official website of the bank where you intend to apply for the Kisan Credit Card scheme.
  • Select the Kisan Credit Card option from the provided list.
  • Upon choosing ‘Apply,’ the website will guide you to the application page.
  • Complete the form by providing the necessary details and select ‘Submit.’ Subsequently, you will receive an application reference number.
  • If deemed eligible, the bank will initiate contact for the subsequent steps within 3-4 business days.

offline:-

  • You can apply offline by visiting your preferred bank branch or downloading the application form from the bank’s website.
  • Commence the application process at the branch with assistance from a bank representative.

FAQs on Kisan Credit Card

What is the duration of validity for the Kisan Credit Card, and how does the tenure vary based on the intended use of funds?

The Kisan Credit Card is valid for 5 years, with the tenure determined by the specific type of activity for which the funds are intended.

What age criteria must be met to apply for a Kisan Credit Card?

Applicants must be at least 18 years old and not exceed 75 years. Senior citizens must have a legal heir as a co-borrower, as per the requirement.

What is the interest rate for the Kisan Credit Card?

The interest rate is determined by the bank, but as per the KCC circular dated 20 April 2012, it is 7% per annum for short-term credit, with a maximum principal amount limit of Rs. 3 lakh.

What are the security requirements for financing through the Kisan Credit Card?

For limits up to Rs. 1.60 lakh and up to Rs. 3 lakh (in the case of tie-ups), security entails hypothecation of crops. For limits exceeding these thresholds, additional security measures include mortgage of land or third-party guarantee, in addition to hypothecated crops or assets.

What benefits does the Government of India offer to enhance finance through the Kisan Credit Card?

The government provides a 2% interest subvention and a 3% prompt repayment incentive on KCC loans (including crop loans and working capital loans for animal husbandry and fisheries) with an overall limit of Rs. 3 lakh per annum. However, the maximum limit per farmer engaged solely in activities related to animal husbandry and/or fisheries is capped at Rs. 2 lakh.

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