The Kisan credit card was launched to protect Indian farmers from the high-interest rates charged by money lenders in the unorganized sector.
The main objective of the Kisan Credit Card Loan is to provide loans to farmers at a low rate of interest. Farmers previously relied on money lenders who charged high-interest rates and were strict on loan terms. As a result, farmers experienced a lot of problems, especially when they were hit by hailstorms or droughts.
The Kisan Credit Card Loan scheme, on the other hand, charges a lower rate of interest, offers a flexible repayment schedule, and includes crop insurance and collateral-free insurance.
The Interest rate offered on the Kisan Credit Card loan may go as low as 2.00%
Banks will not seek security on loans up to Rs. 1.60 lakh.
Crop insurance coverage against a variety of calamities is given to the users.
Farmers are provided insurance coverage against permanent disability, death.
The repayment period is decided based on the harvesting of the crop and its marketing period.
Maximum loan up to Rs. 3.00 lakh can be taken by the cardholder.
Farmers who deposit their money in the Kisan Credit Card account will get a high rate of interest.
Farmers are charged a simple interest rate when they make prompt payment
Compound interest is charged when cardholders fail to make timely payments.
Anyone, who is engaged in agriculture, allied activities, or other non-farming activities may apply for the Kisan credit card loan. The following criteria must be met
Minimum Age – 18 years
Maximum Age – 75 years
In case a borrower is a senior citizen (age more than 60 years), a co-borrower is mandatory where the co-borrower should be a legal heir.
All farmers – individuals/joint cultivators, owners
Tenant farmers, oral lessees, sharecroppers, etc.
SHGs or joint liability groups including tenant farmers
For Kisan Credit Card Loans in India, the bank may require the following documents
Duly filled-in and signed-in application form.
Copy of identity proof such as an Aadhaar card, PAN card, Voter ID, driving license, etc.
Copy of address proof documents such as an Aadhaar card, PAN card, Voter ID, and driving license. The proof should have the applicant’s current address to become valid.
A passport-size photograph of the applicant.
Other documents like security PDC as requested by the issuing bank.
The application process for the Kisan credit card can be done online & offline.
Visit the website of the bank you wish to apply for the Kisan credit card scheme.
From the list of options, choose the Kisan Credit Card.
On clicking the option of ‘Apply’ the website will redirect you to the application page.
Fill out the form with the required details and click on ‘Submit’.
In doing so, an application reference number will be sent.
If you are eligible, the bank will get back to you for the further process within 3-4 working days.
Alternatively, you may download the application form from the bank's website or visit a branch of the bank of your choice to apply offline. With the help of the bank representative, the applicant can start the application process. Once the formalities are completed, the loan officer can assist the farmer with the amount of the loan.
Using the Kisan Credit Card (KCC) Scheme, marginal farmers receive a flexible credit limit of between Rs 10,000 and Rs 50,000 (as Flexi KCC) based on their land holdings and crops, as well as credit for post-harvest warehouse storage, farm expenses, consumption needs, etc., plus a small loan amount.
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For more information visit: PM Kisan (KCC) Credit Card