Kisan Credit Card (KCC)

Kisan Credit Card is a Government of India scheme which aims to save farmers from high-interest rates usually charged by money lenders in the unorganized sector. The interest rate can be as low as 2.00% under this scheme. Moreover, the repayment period is based on the harvesting or marketing period of the crop for which the loan amount was taken. Other details are given below.

Features and Benefits Of KCC

The features and benefits of Kisan Credit Card are:

• Interest rate can be as low as 2.00%
• Collateral free loans up to Rs. 1.60 lakh
• Crop insurance scheme is also provided to farmers
• Following Insurance coverage is provided
  • Up to Rs. 50,000 against Permanent Disability and Death
  • Up to Rs. 25,000 is provided against other risks
• Repayment period is based on the harvesting and marketing period of the crop for which the loan amount was taken out
• Loan amount up to Rs. 3.00 lakh can be taken out by the card holder
• Collateral is not required on loans up to Rs. 1.60 lakh
• Farmers get high interest rate on the savings in their Kisan Credit Card Account
• Simple interest rate is charged as long as the user makes prompt payment. Otherwise compound interest rate becomes applicable

Top Banks offering Kisan Credit Cards

The Kisan Credit Card scheme was set by NABARD (National Bank for Agriculture and Rural Development) and has been followed by all the major banks in India. Top banks that offer KCC are:

State Bank of India – State Bank of India is one of the largest issuers of Kisan Credit Cards. The interest charged on SBI Kisan Credit Card can go as low as 2.00% per annum on loans up to Rs. 3.00 lakh.

Punjab National Bank – PNB Kisan Credit Cards are one of the most requested credit cards. The application process is quite easy and users can expect speedy disbursal post-processing.

HDFC Bank – HDFC Bank Kisan credit cards offer loans at an interest rate of around 9.00%. The maximum credit limit that is offered is Rs. 3.00 lakh. Cheque book with a credit limit of Rs. 25,000 is also issued. Moreover, in case a farmer suffers from crop failure then they can get an extension of up to 4 years or more. Insurance coverage is also provided against crop loss because of natural calamities or pest attacks.

Axis Bank – Axis Bank Kisan Credit Cards offer loans charging interest rates starting from 8.85%. However, they provide loans at an interest rate lower than this in line with government subvention schemes.

Interest Rate Of KCC

The interest rate on KCC varies from bank to bank. However, most banks provide Interest subvention loans in line with the Government Schemes where the interest charged can be as low as 2.00%.

Eligibility Criteria & Documents Required

Kisan Credit Card Eligibility Criteria

• All farmers who are either individuals/Joint borrowers of the land and involved in farming or allied activities
• Individuals who are owner cum cultivators
• All the Tenant farmers or Oral lessees and Share Croppers in the agricultural land
• Self Help Groups or Joint Liability Groups including tenant farmers or sharecroppers
• Farmers should be eligible for a production credit of Rs.5,000 and above, and then he/she is entitled to a KCC.
• All such farmers who are eligible for short term credit loan towards crop production or any allied activities as well as non-farm activities
• The farmers should be the residents of the bank’s operational area

Documents Required For KCC

People who want to avail a Kisan Credit Card must submit establish their identity & address. The applicant can submit any one of the below-given documents.

Proof of Identity- PAN card, Aadhaar card, Driver’s License, Passport, Voter’s ID, Overseas Citizen of India Card, Person of Indian Origin Card, Job card issued by NREGA, Letters issued by the UIDAI

Proof of Address-Aadhaar card, Driver’s License, Passport, Utility Bill not more than 3 month’s old, Ration Card, Property Registration Document, Person of Indian Origin Card, Job card issued by NREGA, Bank Account Statement

How to Apply For KCC 

Online

Farmers who want to avail KCC online can easily do so by following the below given steps:

• Visit the preferred bank’s website and visit their Kisan Credit Card Section
• Download & print the Application form
• Duly fill out the Application form
• Submit the application and necessary documents at the nearest bank’s branch
• The loan officer will share the necessary information with the applicant
• Once the loan amount is sanctioned the card will be dispatched
• Customers can start using the credit card once they receive the KCC.

Branch Visit

Farmers seeking Kisan Credit Card can also visit a bank of choice and get in touch with a bank official. The official will help the applicant in filling out the form. Afterwards, the loan officer will share the necessary details and process the application.

FAQs Regarding KCC

What is a Kisan Credit Card Loan?

Kisan Credit Card loan is a Government of India scheme under NABARD that aims to offer farmers loans at low interest rates. The interest rate after subvention can go as low as 2.00%. This will ensure that the farmers do not fall into debt traps or lose out on cultivating crops.

How is Kisan Credit Card Loan amount calculated by the bank?
The loan amount that is extended to the cardholder is decided by the loan officer at the time of application. Various factors are taken into consideration like farm area, expenses related to farming, consumption, etc.

What security/collateral will the bank demand to sanction the loan amount?
Banks won’t demand security or collateral as long as the loan amount is less than Rs. 1.60 lakh. Beyond that, banks can ask for security that it deems fit. Collateral can be in the form of handing over the crops for which the loan was taken out or other assets like tractors, trolleys and so on.

What is the tenure of the loan that can be taken out via Kisan Credit Card?
The maximum tenure can be 5 years.