The Kisan Credit Card (KCC) is the card through which many farmers in India have benefited. The Government of India provides an ease to the farmers with the help of the KCC interest rates provide short-term credit to farmers that aid them in buying their necessary equipment and other relevant expenses. Furthermore, the farmers are spared the heavy interest amounts on this loan.
What is Kisan Credit Card Scheme?
The KCC scheme is the best start to provide easy loan access through this card. This scheme was launched in 1998 by NABARD (National Bank for Agriculture and Rural Development).
Furthermore, the government’s main objective is to provide loans with as low-interest rates as 2% and 4%. Well, that seems a credit with benefit!
Features of the KCC Scheme
Kisan credit scheme provides numerous features that are in favor of the farmers. The government has developed the scheme while keeping its financial requirements in sight.
- Farmers are allowed to avail of loans up to 3 lakhs/lacs
- They are given credit for meeting their financial requirements in agriculture
- KCC provides insurance for the farmer cardholders of up to Rs. 50,000. In case of other damages
- Farmers receive savings accounts along with this card
- Flexible repayment
- Single credit facility for all the agricultural facilities
- Farmers can apply for the credit for 3 years and make the repayment as soon as the harvest season is over
- There is no collateral for credits of Rs. 1.60 lakh
Kisan Credit Card Eligibility / Who can apply?
This scheme was introduced to ease the burden of farmers with low-interest rates. However, a farmer can only apply for this credit if he fits right into the following eligibility criteria.
- Landowners that may be individuals or cultivators
- Famers who are working individually or are joint borrowers of the cultivable land
- Individual land owners as well as cultivators
- Oral leases, crop sharers, and tenant farmers
- The farmers who earn Rs. 5000 or above are eligible for KCC.
Documents Required to Apply For KCC Scheme
The farmers must provide their complete documents and proof of address to avail the KCC scheme.
- Passport
- Voter’s ID
- Person of Indian Origin Card
- PAN card
- Aadhaar card
- Driver’s license
- Job card issued under Act ( MNREGA)
- Letters issued by the UIDAI
NOTE: The applicant should also bring his passport size photograph along.
Kisan Credit Card Limits
The KKC scheme offers different credit limits:
| Card Type | Credit Limit | Maximum Tenure |
| Axis Kisan Credit Card | Up to 2.50 lakh | Up to 1 year for cash loans & up to 7 years for term loans |
| BOI Kisan Credit Card | Covers 25% of the farmer’s income | N/A |
| SBI Kisan Credit Card | Depends on crop cultivation | 5 years |
| HDFC Kisan Credit Card | Limited up to 3 lakh | 5 years |
KCC Limit For Kharif Crop
Since the credit limit is different that depends on the cropping. Therefore, the government has revolving limits for several crops. The KCC scheme offers a 10% extra limit of credit for the Kharif crop.
Limit For Ravi Crop
Ravi crop is the crop that harvests in the winter season. Therefore, the credit limit differs on various Ravi crops.
| Crop type | Credit Limit (INR) |
| Wheat | 46,581 |
| Barley | 37,666 |
| Gram | 29,532 |
| Peas | 28,974 |
| Rye/Mustard | 35,151 |
| Lentils | 31,635 |
| Sunflower | 37,910 |
| Berseem | 30,000 |
Interest Rate & Other Charges of Kisan Credit Card
The interest rate of KCC varies from bank to bank. However, the interest rate limit ranges from 2% to 4%. In addition, the other subsidies of the scheme may be offered to the cardholders depending on the credit. Moreover, the other charges, processing fees, and insurance premiums will be provided by the bank.
How to apply for Kisan Credit Card (KCC)? Online Process
The government of India offers easy access to credit to the farmers. They can use the online process to apply. Here is the guide:
- Visit the official website of the bank you want to apply through
- Click on the KKC option and apply
- The website will redirect you to the application form
- Fill out the form carefully and hit the submit button
- After that, the bank will share your application reference
- Lastly, the bank will contact you within 3-4 days if you are eligible
How to apply for Kisan Credit Card (KCC)? Offline Process
If you want to apply for the KKC offline then it is quite a smart and quick choice too. You have to visit any bank of your choice and fill out the application form. Then, submit it along with the documents. The bank representative will assist you with further loan processes for farmers.
Benefits of the Kisan Credit Card Scheme
Here are the following benefits of this scheme:
- Getting credit is now accessible
- Low-interest rates
- Flexible payback process
- Large loan amount accessibility based on income
- The facility of insurance including crop protection
Summary
The KKC stands for Kisan Credit Card scheme introduced by the government of India. This scheme has helped the farmers in so many ways. The main purpose of this card is to provide convenience to farmers. They can purchase their equipment and other essentials. Moreover, the plus part of the scheme is that it has the lowest interest rates and a flexible repayment process.
