Kisan Credit Card (KCC)

Agriculture is the backbone of the Indian economy. This scheme provides assistance to the farms in terms of providing financial aid.

This program is governed by the Indian Government and was also developed by NABARD (the National Bank for Agriculture and Rural Development) in 1998, with the main goal of providing short-term loans to farmers. This scheme allows the farmers to meet their financial needs and access credit. It empowers the farmers of the nation.

Some bank interest rates:

HDFC Bank Kisan Credit Card: 9%

SBI Kisan Credit Card: up to 7% p.a.

PNB Kisan Credit Card: up to 7%

Objectives of the KCC

The Kisan Credit Card scheme provides adequate and timely credit support to farmers.

  • meeting the short-term credit requirements of farmers
  • Expenses related to post-harvest
  • requirements for consumption by farmer households;
  • Provide working capital for maintenance on the farm.
  • The investment credit requirement for agriculture and allied activities

Benefits of KCC

No Collateral Required: A loan up to 1.60 lakhs or below does not require any collateral. This makes it convenient for the farmers.

2) Purchase assistance

Farmers can receive cash discounts from the merchant and the dealer for agricultural products, and they can also get assistance in purchasing agricultural products like fertilizer, seeds, etc.

3) A one-stop platform for credit facilities

This scheme provides a single credit facility for all agricultural requirements, eliminating the need for multiple loan applications for different purposes.

4) Repayment options are flexible.

Farmers can repay once the season of harvest is over, which does not pressure them, and this offers flexible repayment options.

5) Additional Benefits

The interest rate at KCC is low, and they also have a smart card and debit card, as well as a Kissan Credit card, which help them use banking services at Hassel Free.

6) Insurance Coverage

KCC holders also have insurance coverage in the case of death or permanent disability up to Rs 50,000 and other risk coverage up to Rs 25,000.

This provides financial assistance for the unforeseen event.

7) Higher loan amount and credit for agricultural and related activities

Farmers can avail up to Rs 3 lakh in loans under the KCC event. The loan is provided for the credit to meet various financial requirements, including post- and pre-harvest and for purchasing seeds, pesticides, and other farm equipment.

Interest Rates and Charges

KCC credit rates are different, ranging from 2% to 4% on average. The government of India provides incentives. The interest rate depends on the cardholder’s financial history and credit score, although the bank is authorized to add additional fees and charges.

Eligibility for the KCC Scheme

  • Any individual who owns and cultivates land is eligible for KCC. It can be smallholder farmers or large-scale farmers.
  • Group Borrowers who own and cultivate land jointly The group can be family members, partners, and other relatives.
  • Individuals who do not own the land but are part of agricultural production activities, such as sharecroppers, tenant farms, or individuals on an oral agreement.
  • Joint Liability Groups and Self-Help Groups of Farmers, Tenant Farmers, etc.
  • Farmers who are part of the production of crops or allied activities such as animal husbandry, such as fishermen

Required Documentation

  1. Filled and signed application form
  2. Identify the proof copy.
  • Adhaar cars
  • Pan card
  • Voter if

3.Address proof

  • Adhaar card
  • Pan card
  • Voter id
  • Driving card

4;Document of land

5.Passport-size photo of the applicant

6.Additional documents

Application process for the Kisan Credit Card

It can be done either online or offline.

Online process

  1. Login to the website of your bank.
  2. Navigate to Kisan Credit Card.
  3. Click on “Apply” and fill out the application form.
  4. Submit the form with the correct details, and the bank will revert to you in 2–3 working days.

Offline  process

  1. Download the application form from the bank’s website.
  2. Submitted the application after filling out valid details.
  3. Once the details are verified, the bank offer will assist the farmer.