Kisan credit card – Affordable credit to Indian farmers

By | 12/18/2018

Kisan Credit Card scheme is introduced in India in 1998, the major purpose of the scheme is to provide short-term credit to the farmers to planting and harvesting crops.

In this article, you will get all your answers related to Kisan credit card (KCC).

Farmers are hard workers with a lack of money and knowledge, In the normal scenario, they borrow money from local money lenders, which causes extra expenditure due to ample interest rates.

Which in result reduces their profit margin and also they don’t get the price after the whole hard work.

Kisan Credit Cards is offered by some public sector bank and rural bank like NABARD (National Bank for Agriculture & Rural Development).

Kisan Credit Cards is very flexible for the farmers for payment and even if the crop is destroyed the payment schedule could be pushed further.

Now, without wasting time, we will drive deeper and grab more information about Kisan Credit Cards (KCC).

Kisan Credit Card Scheme

The Kisan Credit Card Scheme is introduced to help and remove several hurdles like:

  • Lack of knowledge of the banking system
  • Delay in process of the loan, as farmers need to purchase seeds, fertilizers, and other related staff at the right time, the timing of availability of fund is important.
  • Flexibility in payment and credit, very easy to use for the poor farmers, they are uneducated and the local leader takes advantage of the farmers.

The intention of the card is not only brought financial support to the farmer’s but also remove such leaders to bring complication and the main reason for jeopardizing the whole season of the farmers.

Also Read: Treatment of Taxation for “Agriculture Income” – Complete Guide

Features of Kisan Credit Cards

The primary feature of Kisan credit card is providing flexible loan with easy documentation work to the farmers, other than that there are some salient features also attach with the scheme.

  • The credit card is valid for 3 years based on the farmers turnover.
  • The Loan amount repayment will be permitted within the period up to 12 months.
  • The Credit card limit would be enhanced considered the performance and good track record of the user.
  • The common case of damage with the crop is natural calamities, the user of KCC provide the benefit of Conversion/rescheduling of loans.

Eligibility of applicant of Kisan Credit Cards (KCC)

If you are a farmers NO ONE STOP you already cleared the first round of “Krishi credit card eligibility”.

  • The land must be used for cultivation of the crop.
  • Land granted to tenants, sharecroppers also participate.
  • The applicant should be 18 years to 60 years of age. If the age of the applicant is above 60 years, it is mandatory to have a co-applicant it should be a legal heir or immediate family member.

Documents required for the application of Kisan Credit Cards (KCC)

Some of the required documents are fixed by the Reserve bank of India, and in addition, each bank has a different set of requirement.

  • Complete filled application form.
  • Address Proof – Documents such as Aadhaar card, PAN card, Voter ID, driving license and passport.
  • Identity Proof – Documents such as Aadhaar card, PAN card, Voter ID, driving license and passport.
  • Passport size photographs of the applicant.

Also Read: Meaning and Importance of Credit Card for a common man

Kisan Credit Card loan limit

This is the section every applicant is keen about. If you as an applicant is eligible for KCC, Are you getting sufficient loan amount as per your requirement?

Here is some clarification:

If you are raising a single crop in a year credit limit will be fixed depending upon this criteria:

  • A credit limit is issued depending upon the crop cultivation as per projected pattern and production.
  • Maintenance expenses & crop insurance
  • For every year (2nd, 3rd, 4th, and 5th year) the credit limit will be extended by 10% every year.

How farmers get Kisan Credit Card

The Kisan credit card is issued by different banks, below report will reveal detailed information:

KCC bank interest rates

How To Apply For Kisan Credit Card

Recently every bank provides the option to apply for Kisan credit card online and offline both.

The smartest way is to apply online.

My father in law holds Krishi Loan (Kisan credit card) from axis bank.

Follow the steps to apply for Kisan Credit Cards online.

  • Select your nearest bank issuer of Kisan credit card (KCC).
  • Click on ‘Apply’ button.
  • Bank will redirect you to fill some relevant forms.
  • Finally, submit.

Bank will review your application and section KCC and limit according to the credentials.

Rajesh Kharche in his book “Bankers Handbook on Kisan Credit Card mentioned all benefits and uses of Kisan credit card.

Also Read: Allow me to share awesome information about PPF (Public Provident Fund)

Kisan credit card (KCC) provides adequate and timely institutional credit to farmers, according to RBI report around 23.53 million users are holding KCC.

RBI Report KCC

The data below clearly provide the interest of farmers enhanced during the last five years.

Kisan credit card data

According to Yogesh sapkale (moneylife.in):

KCC is credit facility made available by the government to farmers against the farm production. Plus the govt gives 2% subvention subsidy on prompt repayment. There is no provision in I-T Act to provide tax benefit or exemption on interest paid on KCC.

Author Profile

Amit Bansal
Amit Bansal
Hey, Amit Kumar Bansal, the man behind this blog. I always passionate about Taxes, Stock Market. This was one of the reasons why I have chosen the field of account. Blogging was not the coincidence it was a proper decision. The main aim of this blog is to help readers to take an informed financial decision. If you like my efforts kindly subscribe to this blog and also let your friends know about this website by sharing.

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