The Kisan Credit Card Scheme (KCC) was introduced in 1998 by the Ministry of Finance, Government of India, to help the farmers/cultivators with the farming and agriculture-allied activities investments. The loan issued under the KCC scheme has a minimal interest rate of 2% to 4% and is available to cover a host of activities, including post-harvest costs.
What is the scheme?
The eligible beneficiaries can apply for the Kisan Credit Card both online and offline, depending on their access and ease of usage of the platforms. Under the scheme, the eligible beneficiaries (list at the bottom of the blog), can apply and get a loan of up to Rs.3 lakh. They can get loans for the marketing of the product. Other benefits of the scheme include:
- KCC scheme beneficiaries get an insurance cover of Rs.50,000 in the case of permanent disability or death and a cover of Rs. 25,000 considering other associated risks
- Beneficiaries will get a savings account with a substantial interest rate. They will also receive a smart card and a debit card, along with the Kisan Credit Card
- The eligible farmers will be granted repayment options for up to 3 years and once the harvest season is complete.
- Eligible farmers will receive constant help in the purchase of fertilizers, seeds, etc. They will also get help in bargaining and availing monetary discounts from merchants and/or dealers.
- No collateral is needed for loans up to Rs.1.60 lakh.
How to apply for a KCC loan?
One can apply for a KCC loan by either visiting their bank branch or applying for the KCC card online. For online, the application must go to the website of the bank branch one would want to seek a loan from. For offline, visiting the branch and furnishing all the relevant documents is required.
Following are the Kisan credit cards documents required while application, both online and offline
- Filled application form
- Copy of any identity proof documents. It could be Aadhar Card, PAN card, driving license, ration card etc.
- Documents of land owned
- Copy of document validating the applicants’ permanent place of residence
- Passport-size photograph of the applicant
- Any other document subject to request by the issuing bank as a form of security
As per the Reserve Bank of India circular, the following are the categories of people who would be eligible for loans under the KCC scheme
- Farmers, this includes both individual and joint borrowers who are own the land and cultivate
- Tenant farmers, oral lessees & sharecroppers
- Self Help Groups (SHGs) or Joint Liability Groups (JLGs)
To sum it up:
The Kisan Credit Card Scheme is a great tool for farmers who need investment before the harvesting season begins. The information on how to avail of the facility should be disbursed across, so every potential beneficiary would know where to go for help.