The Kisan Credit Card (KCC) scheme, introduced by the Government of India in 1998, is a significant initiative aimed at providing easy and affordable credit to farmers.
It was developed by the Reserve Bank of India (RBI) and the National Bank for Agriculture and Rural Development (NABARD) to address the financial needs of farmers, especially during crop cultivation and related agricultural activities.
It also increases the income of the farmers which is to be believed. Another purpose of this is to meet the demand for cash in time to harvest the crop. As part of this, the central government will provide loans to farmers at low interest rates through this card.
Key Features of the Kisan Credit Card Objective:
- The primary goal is to provide short-term credit to farmers for agricultural activities like seed purchase, fertilizer procurement, and harvesting. It also covers allied activities like dairy farming, fisheries, and poultry.
Eligibility:
- Farmers engaged in crop cultivation.
- Dairy farmers, poultry and fishery owners.
- Tenant farmers, sharecroppers, and self-help groups involved in farming.
Credit Limit:
- The credit limit is determined based on the farmer’s landholding, crop type, and cultivation cost.
- Limits can be revised periodically depending on the farmer’s repayment behavior and financial needs.
Repayment Period:
The repayment schedule is flexible and linked to the crop harvesting period. It generally ranges from 12 months to 5 years.
Interests rates:
Interest Rate: Up to Rs. 3.00 lakhs- 7% p.a.
Insurance Cover:
KCC provides personal accident insurance cover for farmers up to ₹50,000 for death and ₹25,000 for permanent disability.
How to Apply for a Kisan Credit Card
Farmers can apply for a KCC through the following:Banks:
- Public sector banks, regional rural banks, and cooperative banks.
- Online: Many banks now offer online applications via their portals.
- Common Service Centers (CSCs): These centers help farmers with their KCC applications.
Documents Required :
- Proof of identity (Aadhaar Card, PAN Card).
- Proof of address (Ration Card, Voter ID).
- Land documents to establish ownership or tenancy.
- Duly filled application form provided by the bank.
The Kisan Credit Card is a lifeline for India’s agricultural community, ensuring farmers can access timely credit, reduce dependence on informal sources, and ultimately contribute to the nation’s food security.
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