Access to timely credit is important for everybody and for enterprises as well. For farmers, it’s especially important since a large part of their work is seasonal in nature and would require them to invest from time to time.
The government of India had introduced the Kisan Credit Card (KCC) Scheme in 1998, to serve this very purpose. Managed by the National Bank for Agriculture and Rural Development (NABARD), the KCC loan scheme aims to offer short-term loans to farmers for meeting their agricultural expenses. Additionally, it offers them credit, through which they can purchase equipment and meet other needs.
Kisan Credit Card
There are several features and benefits offered to beneficiaries under the KCC scheme. Read on to learn more about what these are.
- The credit offered to farmers can be used for making investments on agricultural equipment and other requirements, such as pump sets, dairy animals, etc.
- All KCC scheme holders are eligible for insurance coverage up to Rs. 50,000 in case they meet with permanent disability or death. In case of other risks, a cover of Rs. 25,000 is provided to those covered under the scheme.
- Low interest rates on loans, with most averaging around 4%.
- The scheme offers beneficiaries assistance in purchasing fertilisers, seeds, etc. along with availing cash discounts from merchants or dealers.
- For loans of up to Rs. 1.6 lakh, KCC beneficiaries are not required to offer any collateral.
How to Apply for Kisan Credit Card
For Kisan Credit Card, online applications can be made by potential beneficiaries. Read on below to learn more about the process.
- Identify the bank you wish to avail a loan from and visit its website
- Head to the ‘Kisan Credit Card’ section and click on ‘Apply’
- Submit the requisite details in the application form and click ‘Submit’
- An application reference number will be generated, which you must make note of
- If your application is considered eligible, the bank will revert to you for further processing within a few days
It is also possible to apply for this via offline means. You need only visit the bank branch, get the application form, and fill it out. The bank’s representatives can help you with filling out the form as well as with details on the loan amount.
Regardless of whether you apply online or offline, it is important to keep some documents handy. Along with the filled-out application form, you will require proof of identity and address, both of which need to be government-issued documents. Additionally, you will be required to share land details, a passport size picture of the applicant, and any other documents the bank asks for.
About Kisan Credit Card Loan
- Under the scheme, farmers can avail up to Rs. 3 lakhs in loans and avail other loans for produce marketing
- All their agricultural and ancillary requirements can be met through a single credit facility/term loan.
- Farmers availing these loans can get credit for up to 3 years and make repayments once the harvest season is over.
The KCC loan scheme is very useful for farmers who wish to avail credit to meet their agricultural needs. The scheme offers a range of benefits to all beneficiaries, but it is important to have all the details in place before you opt for this.