The Kisan Credit Card (KCC) Scheme was introduced by the Indian government in 1998 to provide financial support to the nation’s farmers. This program, often referred to as the PM Kisan Credit Card Yojana, was developed by the National Bank for Agriculture and Rural Development (NABARD) to offer credit cards to farmers.
Farmers can use credit cards to make short-term credit purchases of seeds, insecticides, fertilizers, and other items. Not only that. Additionally, they can use it to manage their agricultural expenditures and obtain loans by withdrawing cash from ATMs.
PM Kisan Credit Card
The unorganized sector typically charges excessive interest rates on the amount borrowed. The PM Kisan Credit Card was introduced to shield farmers from this unjustified financial burden. Farmers who use this particular credit card can borrow money at a reduced interest rate.
Nevertheless, the interest rate varies from issuing bank to issuing bank, with an average annual interest rate of about 7%. Not only that. The KCC card loan has a fairly flexible payback schedule because farmers can decide to begin paying it back as soon as their crops are produced.
The PM Kisan Samman Nidhi Scheme was also introduced by the Indian government in the 2019 Interim Union Budget, in addition to the KCC program. Farmers can take advantage of income support with this program for up to 6,000 every year.
The Kisan Samman Nidhi Scheme and the Kisan Credit Card Scheme were combined by the Indian government in Budget 2020 to guarantee that all farmers have access to income support. All recipients of the Kisan Samman Nidhi Scheme are now qualified to apply for a Kisan Card.
How to get a Kisan Credit Card: How to Apply
The Kisan card application process is quite simple. Either online or offline options are available. Here is a brief overview of the procedures you must take in each of these situations.
Step 1: Visit the website of the issuing bank in step one of the online application process.
Step 2: From the website’s list of credit card options, choose “Kisan Credit Card.”
Step 3: Select “Apply” from the menu.
Step 4: Complete and submit the KCC application form with all required supporting documentation.
Finally, Your application will be reviewed, and if approved, the card will be delivered to your address shortly.
Process for Offline Applications:
Visit one of the issuing bank’s branches.
Leading Banks offering Kisan Credit Cards
Knowing what Kisan Credit Cards are now, let’s examine some of the best banks that offer them as well as their features and associated fees.
Kisan Credit Card from Axis Bank
- Loan terms of up to one year for cash advances and seven years for term loans
- Insurance for agricultural crops
- Interest rates for production and investment credit begin at 8.55% annually.
SBI Kisan Credit Card
- Loan terms of up to five years with annual percentage increases of 10%
- Insurance for agricultural crops
- Starting at 7% per year, the interest rate is subject to a 2% interest subsidy from the Indian government.
Central Bank of India Kisan Credit Card (Credit Card from Central Kisan)
- 5-year maximum loan term for cash credits
- There is no need for security for loans up to Rs. 3 lakh.
- Interest rates begin at 7% annually.
Union Bank of India Kisan Credit Card
- loan period of up to five years
- Interest rates for loans up to Rs. 3 lakhs start at 7% annually.
- Crop loans up to 1.60 lakh rupees have no margins.
Rates of Interest and Other Fees for KCC
The interest rate and additional fees, such as processing and inspection fees, can differ from one issuing bank to another. Make sure to carefully examine the terms and conditions of the KCC program supplied by the bank to get a fair understanding of what the rates and fees are.
Kisan credit card eligibility requirements and required documents:
It’s crucial to first understand the requirements for KCC eligibility that you must meet and the supporting documentation that must be presented before moving forward with your application. Let’s examine both of these factors now.
KCC Eligibility Requirements
The applicant must fit one of the following criteria in order to be eligible to apply for the Kisan Credit Card:
- An individual borrower who also cultivates their own land
- Owner cultivators who are joint borrowers
- an employee farmer
- A verbal lessor
- a tenant farmer
- a farmer’s joint-liability group (JLG) or self-help group
Documentation Needed for KCC
The following is a list of the documents that you must provide as part of the application procedure. However, be aware that each bank may have a different list of documents.
- a copy of your identification documents, such as your passport, driver’s license, Aadhaar, or voter ID
- A copy of your address proof, such as your driver’s license, passport, voter ID, or Aadhaar
- a properly completed application for the KCC plan
- a certified copy of the land ownership documentation from the Revenue authorities
- two photos in passport size