Kisan Credit Card scheme aims to relieve farmers from the extremely high-interest rates charged by unauthorized money-lenders, for loans to serve their farming needs. The KCC scheme was first launched back in 1998 by the Indian banks. It was created by the National Bank of Agriculture and Rural Development (NABARD).
The KCC card was introduced so that farmers could meet their credit needs for agriculture, fishery, animal husbandry, and other related sectors. They are further freed of high-interest rates, as the KCC interest rates start from 2% only and average at 4% p.a.
Also, with the Kisan Credit Card Yojna, farmers need to repay their loans as per the harvesting and marketing period of the crop for which the loan was taken.
On May 14th, 2020, the Union Finance Minister of India, Nirmala Sitharaman announced that INR 2 lakh crore concessional credit boost will be provided to 2.5 crore farmers via the Kisan Credit Card scheme.
This article will tell you everything you need to know about KCC and all its related aspects. So, without further ado, let’s get started:
What is Kisan Credit Card?
Kisan Credit Card Yojana is a Government-initiated scheme that provides loans to farmers at pretty concessional rates. This scheme had been launched to save the farmers from the unorganized sector’s moneylenders who charge unusually high rates.
The Government has also allowed a longer repayment period as per the harvesting and marketing period of the crop for which the Kisan Credit Card loan had been taken. With a Kisan Credit Card, the farmers are also provided with a crop insurance scheme.
Features/ Benefits of Kisan Credit Card
- The farmer can avail of a loan of up to INR 3 lakh. You can also avail of the produce marketing loans.
- The KCC scheme also provides insurance coverage for the KCC cardholders up to INR 50,000 in case of their unfortunate demise or permanent disability. A coverage of INR 25,000 is provided in case of other risks.
- In addition to the KCC card, the eligible farmers will get a Savings account with a hefty interest rate and a smart card and debit card too.
- The farmers will get flexible repayment options along with a hassle-free disbursement procedure.
- The Kisan Credit Card loan is given to the farmers for meeting their agriculture-related financial requirements and other requirements like post-harvest expenses.
- The Kisan Credit Card Yojna is a single credit facility/ term loan to meet a farmer’s all agricultural and ancillary needs.
- The KCC scheme will also assist in the purchase of fertilizers, seeds, and other farming stuff. It will also help in procuring cash discounts from dealers and merchants.
- The farmer will get the credit for a period of up to 3 years. He’ll have to repay only once the harvesting is complete.
- If the farmer takes up a loan of INR 1.60 lakh, then no collateral is required.
Who can apply for a Kisan Credit Card?
A person is can apply for the Kisan Credit Card scheme if they are associated with farming and agriculture. People who use someone else’s land to cultivate can also make use of this scheme.
The applicant needs to be in the range of 18 to 75 years to apply. Applicants aged above 60 years must have a co-applicant.
Kisan Credit Card Eligibility Criteria
It is quite obvious that not everybody can avail of is KCC card. There are certain eligibility criteria for the same and those are listed below:
A person can avail of the KCC scheme if he/she:
- Is an individual farmer who is both owner and cultivator of the agricultural land.
- Belongs to a group of joint-borrowers and this group should be the owner/cultivator.
- Is a sharecropper, tenant farmer, or an oral lessee.
- Is a part of Self-help groups (SHG) or Joint Liability Groups (JLG) of farmers, sharecroppers, tenant farmers, etc.
- Is involved in crop production, other allied activities such as animal husbandry, or other non-farm activities like fishing.
The minimum age for application: 18 years
The maximum age for application: 75 years
How to apply for Kisan Credit Card?
Kisan Credit Card application is pretty simple. You can do it either online or offline.
Kisan Credit Card online application
The following step-by-step procedure will guide you through the Kisan Credit Card online application:
- Go to the bank’s website where you want to apply for the Kisan Credit Card Scheme.
- A dropdown list of options appears. From there, choose the Kisan Credit Card.
- Click on the option of ‘Apply’. Now, the website will redirect you to the application page.
- Fill in the Kisan Credit Card form along with all the required details.
- Click on the ‘Submit’ option.
- Then, an application reference number will be sent to you.
- Your details will go through a verification procedure. If the bank finds you eligible, then it will reach you for the next procedure within 3 to 4 working days.
- Then, the financial institution will ask you for some documents which will consist of ID proof, address proof, recent passport size photo, and other special documents (like the security PDC). After this, the loan will be processed.
Kisan Credit Card offline application
If you want to apply offline for KCC, then the following guide will help you:
- You will have to visit the bank branch where you want to apply offline. Else, you need to download the Kisan Credit Card form from the bank.
- In either case, you will need to visit the bank branch, and then a bank representative will help you start with the Kisan Credit Card application
- Fill up the KCC online application form and then submit it to the loan officer.
- The loan officer will carefully go through all the factors and then set your Kisan Credit Card loan limit. If the loan amount is more than INR 1.60 lakh then you will have to submit a collateral.
- After the formalities are all done, the loan officer of the bank will help you with retrieving the Kisan Credit Card Loan. And at the same time, you will receive your Kisan Credit Card.
Also Read: PMVVY Scheme: Pradhan Mantri Vaya Vandana Yojana for Senior Citizens
Documents required to apply for Kisan Credit Card
Given below are all the basic and general documents needed to apply for the Kisan Credit Card:
- Duly filled-in and signed-in Kisan Credit Card form.
- Copy of your Identity proof which can be of any of the following:
- Aadhaar Card
- PAN Card
- Voter ID
- Person of Indian Origin Card
- Letters issued by the UIDAI
- Job Card issued under Mahatma Gandhi Rural Employment Guarantee Act (MNREGA)
- Driving License
- Copy of your address proof which can be again any of the following:
- Aadhaar Card
- PAN Card
- Voter ID
- Driving License
- Passport
- Utility Bill of the last 3 months
- Ration Card
- Job Card issued under Mahatma Gandhi Rural Employment Guarantee Act (MNREGA)
- Property Registration Document
- Bank Account Statement
- Person of Indian Origin Card
The address proof needs to have your current address to become valid.
- The documents of the land where the agricultural practices will be carried on.
- Passport Size photograph
- Other documents like security PDC if the issuing bank requests for it.
Kisan Credit Card Interest Rates
The KCC interest rate depends on the bank the loan is taken from. It also depends on the loan’s limit against the Kisan card.
But, the Kisan Credit Card interest rate could be as low as 2% (for SBI Kisan Credit Cards). The average value of the Kisan credit card loan interest rate is in the range of 4% to 9%.
Top Banking Institutions that offer Kisan Credit Card
| Sl. No. | Bank Name | Credit Limit | Interest Rate Charged (p.a.) | Maximum Loan Tenure |
| 1. | Axis Bank | Up to INR 2.50 lakh | 8.85% | Up to 1 year for cash credit
Up to 7 years for term loans |
| 2. | Bank of India | Up to 25% of the farmer’s estimated income (but not more than INR 50,000) | 4% | N/A |
| 3. | State Bank of India Kisan Credit Card | Depends on the cropping pattern and the crop cultivation (Up to INR 3 lakhs) | 2.00% onwards | 5 years |
| 4. | ICICI Kisan Credit Card | As per the bank’s terms and conditions which will be as per the RBI guidelines | 9.70% – 12% | 5 years |
| 5. | HDFC Bank | Up to INR 3 lakh | 9.00% | 5 years |
| 6. | PNB Kisan Credit Card | Up to INR 3 lakhs | 7.00% | N/A |
How to use the Kisan Credit Card?
After the farmer receives their Kisan Credit Card, they can start using it right away. They can make cash withdrawals or direct purchases as well. Some banking institutions will also provide you with a Cheque book for the same.
The customer needs to make sure that they pay back the credit amount when prompted. This is a must so that the Kisan Credit Card loan interest is limited to simple interest only. Otherwise, the interest that would apply to the loan amount could become a compound interest. It is quite obvious that the farmer will have to pay lesser in case of a simple interest than what they had to pay in case of compound interest.
Kisan Credit Card limit
The Kisan Credit Card limit is quite flexible. It could range from INR 10,000 to INR 50,000 for all marginal farmers.
Other farmers’ credit limits will depend on the crop grown, the cropping pattern, and also the finance scale. This Kisan Credit Card loan limit could increase at the rate of 10% for every next year up till you reach the 5th year.
Besides, the farmers will also receive an accident insurance coverage of a maximum of INR 50,000 along with the Kisan Credit Card loan.
The Kisan Credit Card loan interest rate and the loan limit largely depends on the bank you take the loan from. Some banking institutions offer a KCC loan of up to INR 3 lakhs as well.
Also Read: Public Provident Fund (PPF): Interest Rate, Features & Benefits
Moratorium of Kisan Credit Card Loan Repayment
Earlier, the moratorium was provided for 3 months only up till 31st March 2020. However, the RBI had announced that the EMI moratorium on loans and credit cards will be extended till 31st August 2020, i.e. for 3 more months.
This will prove to be beneficial for KCC loan customers too who had their loan repayment date between 1st March 2020 to 31st August 2020. They can take advantage of this facility and make late KCC loan EMI payments without the late payment charges being levied.
Key points:
Eligibility for applying for the Moratorium on KCC Loan Repayment: Anybody whose loan repayment date falls between 1st March 2020 and 31st August 2020.
Application Procedure: You need to contact the bank from where you have taken the loan. You could prefer to call the customer care cell instead of visiting the bank branch (to ensure safety in the ongoing pandemic).
Some banking institutions will apply the moratorium period on your loan automatically if you skip the payment from 1st March to 31st August 2020.
Moratorium period: 3 months only.
Kisan Credit Card under the PM Samman Nidhi Scheme
What is PM Samman Nidhi Scheme?
The Pradhan Mantri Kisan Samman Nidhi was announced back in the 2019 Interim Union Budget of India. This scheme is a Government of India initiative and under this scheme, farmers will receive an amount up to INR 6,000 yearly to support their income.
After the official release of the 2020 Union Budget, the government has brought together the Kisan Credit Card (KCC) and the Kisan Samman Nidhi Scheme. So, this way the farmers can now avail all beneficiaries under both the schemes and access institutional credit in a better way.
How to apply for Kisan Credit Card under the PM Kisan Samman Nidhi Scheme?
Now, you can apply for a KCC even if you already enjoy the perks of the Kisan Samman Nidhi Scheme. Given below are the steps you need to follow to apply for a Kisan Credit Card under the PM Kisan Samman Nidhi Scheme:
- Fill in the KCC form available from the website of all commercial banks. Otherwise, you can also visit the bank branch.
- Fill in your basic information such as the crop sowed, land details, land record, etc.
- Submit this form to any of the Common Service Centers (CSC). They will transfer your form to the bank.
FAQs about Kisan Credit Card
- Crop production expenses
- Working capital (expenses for day-today farming activities)
- Maintenance of farming assets and other allied activities like fishery, dairy animals, poultry, etc.
- Expenses related to marketing
- All farmers including individual farmers, joint cultivators, owners, etc.
- Tenant farmers, oral lessees, sharecroppers, etc.
- Joint liability groups or SHGs
3. What is the Kisan Credit Card Loan Interest Rate?
Ans. The interest rate varies from one bank to another. However, it depends on various factors like the land you will be farming, crop to be cultivated, the farmer’s credit history, etc.
Rest assured, because RBI usually keeps a check on the maximum KCC interest rate offered by a bank. It usually ranges from 4% to 9%. SBI KCC interest rates start from 2% p.a.
Ans. The repayment tenure is decided as per the loan amount, the land cultivated in, the crop cultivated, etc. Generally, you have to repay after the harvesting and marketing season of your crop.
Ans. Yes, KCC can be referred to as a type of crop loan. Crop loans are a type of loan that a farmer can take to meet their agricultural capital requirements. However, you can use a KCC for several other related purposes and not just to meet your working capital needs.
Ans. The minimum age required to apply for a KCC loan is 18 years and the maximum age is 75 years.
Ans. The validity period of a Kisan card is 5 years. However, the validity tenure depends on what type of activity you need the loan amount for.
Ans. The Kisan Credit Card credit limit for the first year depends on the following factors:
- The crop cultivation as per the scale of finance, and the proposed cropping pattern.
- Post-harvest/ household consumption needs.
- Expenses to maintain the crop insurance, farm assets, Personal Accident Insurance Scheme (PAIS), and asset insurance.
Ans. Yes, KCC cards do come with a revolving cash credit facility for an unlimited number of withdrawals and repayments, when done within the given credit limit.
Ans. You can either visit the bank branch or apply for Kisan Credit Card online. Refer to this section for detailed information.
Ans. You can contact them via their toll-free number or email them:
Kisan Credit Card Customer Care Number: 155261 / 1800115526 or 0120-6025109
Kisan Credit Card Customer Care Email: pmkisan-ict@gov.in
Ans. Contact the Customer Service Centre of the PSB from where you have taken the KCC. Else, you can visit the bank branch from where you took the KCC, to check your KCC account balance.
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