The Kisan Credit Card (KCC) is a government-backed loan scheme that provides short-term credit to farmers for agricultural activities. It was launched in 1998 by the National Bank for Agriculture and Rural Development (NABARD).
To be eligible farmers must meet the following criteria:
- Be a citizen of India
- Own agricultural land
- Have a valid PAN card
- Be able to provide collateral
Interest Rate
The interest rate on KCC is currently 7% for loans up to Rs. 3 lakh. This is subject to change, so it is important to check with your bank before applying for a loan.
Limit
The credit limit on a KCC is determined by a number of factors, including the farmer’s landholding size, cropping pattern, and repayment track record. The maximum limit is Rs. 10 lakh.
Benefits of Kisan Credit Card
The KCC offers a number of benefits to farmers, including:
- Easy access to credit at affordable rates.
- Flexibility in repayment terms.
- No collateral requirement.
- Insurance cover against crop failure.
- SMS alerts for all transactions.
- Toll-free helpline for assistance.
How to Apply for a Kisan Credit Card
Documents Required
To apply for a KCC, farmers can visit their nearest bank branch. They will need to submit the following documents:
- PAN card
- Aadhaar card
- Voter ID card
- Land ownership documents
- Bank statement
You can apply for a Kisan Credit Card online or at any bank branch. The online application process is usually faster and more convenient. To apply online, you will need to create a profile on the bank’s website and submit the required documents.
Repayment of Kisan Credit Card
Kisan Credit Cards must be repaid within a period of five years. However, you can avail of a one-year moratorium on repayments for the first crop. The repayments are usually made in quarterly installments.
Conclusion
The Kisan Credit Card is a valuable financial tool for farmers. It provides access to credit at competitive interest rates and flexible repayment terms. If you are a farmer, you should consider applying for a Kisan Credit Card.
