The Kisan Credit Card (KCC) scheme was launched by the Government of India in 1998 to provide financial support to the country’s farmers. This scheme was developed by National Bank for Agriculture and Rural Development (NABARD) also known as PM Kishan Credit Card Yojana.
The KCC card was introduced to save Indian farmers from high interest rates of lenders. Keeping in mind the needs and benefits of farmers, special concessions have been arranged such as farmers can easily take small loans when required at low interest rates and also get interest rate concessions if they repay the money on time.
Earlier this card facility was applicable only to farmers but in the budget 2018-19 fishermen and animal husbandry (poultry) have also been included in this facility.
As per the last circular dated 15.01.2020 the number of PM-Kisan beneficiaries is 9.4 crore and the number of active KCC holders is 6.76 crore.
Objectives of Kisan Credit Card
The Government of India has launched this Kisan Credit Card to provide financial assistance to farmers, the main objective of which is to provide loans to farmers at low interest rates.
Farmers require loans for various stages of cultivation throughout the year such as seed purchase, post-harvest expenses, farm maintenance expenses, etc. Earlier farmers had to depend on moneylenders for all these expenses where interest rates were high and deposits were also required, on top of that farmers had to face severe problems in case of natural calamities like hailstorm, drought etc.
All these problems of the farmers have been solved through Kisan Credit Card such as low interest rates, no deposit required for fixed amount of loan and even relaxation in terms of repayment period.
Kisan Credit Card Details
- Scheme Name : Kisan Credit Card
- Type of plan : Central Govt. Scheme
- Ministry in charge : Ministry of Agriculture and Farmers Welfare
- Purpose of the plan : Providing financial assistance to farmers, fishermen and animal husbandry
- Benefits of the plan : Low interest rate loans, no deposit required, crop insurance etc
- Application Process : Online and offline
Benefits of Kisan Credit Card
With this card you get the following benefits:
- Government of India provides 2% interest subvention and 3% prompt repayment incentive in case of Kisan Credit Card i.e. if you repay the loan of Rs.
- One of the advantages of KCC is that you can get a loan at an interest rate of only 4%.
- A maximum loan of Rs 3 lakh can be taken through this card.
- If you take a loan of 1 lakh 60 thousand from the bank, then no deposit is required.
- Crop insurance coverage is offered to Kisan Credit Card holders keeping in mind the loss of farmers in case of various natural calamities.
- Another important aspect of KCC is accident insurance. These cardholders get personal accident insurance up to ₹50,000 in case of death or permanent disability and up to ₹25,000 otherwise.
- The repayment period of this card is determined based on the harvesting and marketing period.
- Farmers are charged the normal rate of interest if they pay within a stipulated period of 1 year.
- Cardholders are charged interest at compounded rates if they fail to make timely payments.
- In case of short term loan maximum limit is 5 years and in case of long term loan maximum permissible limit (MPL) and Kisan Credit Card limit will be considered.
KCC Application Eligibility
Eligibility criteria for Kishan Credit Card are mentioned below:
- All individual or collective farmers are eligible for this card.
- Minimum age for KCC is 18 years.
- Maximum age is 75 years.
- A co-borrower is mandatory if the borrower is a senior citizen i.e. above 60 years of age where the co-borrower must be the legal heir.
- Tenant farmers, oral tenants, and sharecroppers are eligible for this card.
- Self Help Groups (SHGs) or Farmers Joint Liability Groups (JLGs) including tenant farmers etc.
- Inland Fisheries and Aquaculture- Fishermen are individuals, self-reliant or joint liability groups or women’s groups and partnership or tenant fish farmers etc. who must carry out any fishery related activities such as ponds, tanks, open ponds, raceways, hatcheries, rearing units, fish farming and fishing related activities. Must have license.
- Sea fish- Beneficiaries listed above who own or lease fishing boats or vessels in estuaries and seas or who have permits for fisheries/mariculture activities in estuaries and open seas and licenses for fisheries and related activities with any other state.
- Poultry and Small Farm- Individual or joint borrowers, joint liability groups or self-help groups owning or renting/leasing duck, chicken, sheep, goat, pig, rabbit, poultry farms.
- Dairy- Individual or joint borrowers, joint liability groups or self-help groups who own or rent or lease dairy farms are eligible for this card.
How to make Kisan Credit Card
You can apply for this card either online or offline. The online application process is described below:
- You need to visit the website of the bank where you want to apply for Kisan Credit Card Scheme.
- Select ‘Kisan Credit Card’ from the list of credit cards.
- Then click on ‘Apply’ and you will get the page to apply.
- You have to fill and submit the form.
- You will then be sent an application reference number. If you are eligible, you will receive the Kishan Credit Card within a few days (maximum 14 days) of application.
Follow the below procedure to apply offline:
- For offline you need to visit the official PM Kisan portal pmkisan.gov.in.
- Click on ‘Download KCC Form’ from Farmer’s Corner on home page, download the application form and fill it properly and submit it to the bank branch.
- Click Kisan Credit Card Form to download the form directly.
- For the convenience of the applicant, he can visit the bank branch and complete the application process easily with the help of the bank representative.
Required Documents for Kisan Credit Card Application
Following documents are required for KCC application:
- Applicant’s ID proof like Aadhaar Card, Voter Identity Card, Driving License Passport.
- Address proof like Aadhaar Card, Driving License, Passport.
- In case of loans above 1 lakh 60 thousand rupees, the applicant will need land papers.
Kisan Credit Card Interest Rates from Top Banks
Kisan Credit Card interest rates vary from bank to bank. The table below mentions the KCC interest rates of top banks:
| Bank Name | Kisan Credit Card Interest Rate |
|---|---|
| State Bank of India | 7% |
| Axis Bank | 8.85% |
| HDFC Bank | 9% |
| ICICI Bank | 9.6% |
Questions related to Kisan Credit Card (FAQs):
You can fill the online form from the bank’s website or visit the bank branch to apply for Kishan Credit Card.
What is the KCC loan limit?
The maximum limit of this card is 3 lakh rupees. No deposit is required for a loan of Rs 1.60 lakh.
Who is eligible for Kisan Credit Card?
For KCC all farmers can take loan individually or owner farmers jointly. All tenant farmers, oral tenants, share farmers and self-help groups or collective liability groups of farmers are eligible for this loan.
What is the age limit for KCC?
The age of the applicant should be 18 years or more and less than 75 years for applying for this card. If the applicant is 60 years of age or above, a co-borrower is required who is the legal heir or relative of the applicant.
How much is the interest rate subsidy in KCC?
The Government of India subsidizes the interest rate by 3% per annum if the Kisan Credit Card loan is repaid within 1 year.
What is the maturity period of KCC?
The validity period of this card is 5 years. But it can be extended for another 3 years.
