The Kisan Finance Card plan is a scheme run by the Government of India that offers farmers timely access to credit. NABARD introduced the Kisan Loans Card (KCC) initiative in 1998 with the goal of providing farmers with short-term formal credit (National Bank for Agriculture and Rural Development).
The KCC system was implemented to ensure that farmers’ credit needs in agriculture, fishery, and animal husbandry were addressed. This was accomplished by assisting them in obtaining short-term loans and providing them with a credit limit for the purchase of equipment as well as other expenses.
Furthermore, with the support of KCC, farmers are spared from the exorbitant interest rates of ordinary bank loans, as the interest rate for KCC starts as low as 2% and averages at 4%. Farmers can use this system to repay their debts based on the harvesting season of the crop for which the loan was granted.
Features
- Farmers are provided credit for covering their financial needs for agricultural and related operations, as well as post-harvest expenses.
- Investment finance for agricultural needs such as dairy animals, pump sets, and so on.
- Farmers can obtain a loan of up to Rs.3 lakh as well as produce marketing loans.
- In the event of permanent incapacity or death, KCC programme holders are covered up to Rs.50,000 in insurance. In the event of other hazards, a cover of Rs.25,000 is provided.
- In addition to the Kisan Credit Card, eligible farmers will receive a savings account with a competitive interest rate, a smart card, and a debit card.
- Flexible repayment options and a straightforward payout procedure
- A single credit facility/term loan is available for all agricultural and related needs.
- Assistance in the procurement of fertilisers, seeds, and other agricultural supplies, as well as obtaining cash discounts from merchants/dealers.
- Credit is provided for up to three years, with repayment possible after the harvest season.
- For loans of up to Rs.1.60 lakh, no collateral is required.
Eligibility criteria
The following are the eligibility requirements for the KCC scheme:
- Any individual farmer who cultivates his or her own land.
- Individuals who are members of a group and co-borrowers. The members of the group must be growers as well as owners.
- The KCC is available to sharecroppers, tenant farmers, and oral lessees.
- Sharecroppers, farmers, tenant farmers, and others form self-help groups (SHGs) or joint liability groups (JLGs).
- Farmers engaged in agricultural cultivation or linked activities such as animal husbandry, as well as non-farm activities such as fisherman
Beneficiaries of this scheme in the fields of fisheries and animal husbandry include:
- Fish farmers, fishermen, SHGs, JLGs, and women’s groups work in inland fisheries and aquaculture. As a beneficiary, you must own or lease any fisheries-related activity. This involves, among other things, owning or leasing a pond, an open water body, a tank, or a hatchery.
- Marine Fisheries: You own a registered boat or another sort of fishing craft and have the required licences or permits to fish in estuaries or at sea.
- Individual farmers or joint borrowers, SHGs, JLGs, and tenant farmers of sheep, rabbits, goats, pigs, birds, and poultry who own, rent, or lease sheds.
- Farmers, dairy farmers, SHGs, JLGs, and tenant farmers who own, lease, or rent sheds are classified as dairy farmers.
Application procedure
The Kisan credit card application process is available both online and offline.
Online
To apply for the Kisan credit card scheme, go to the website of the bank.
Select the Kisan Credit Card from the list of alternatives.
The website will send you to the application page if you select the ‘Apply’ option.
Fill out the form with the necessary information and press the ‘Submit’ button.
An application reference number will be issued as a result.
If you are eligible, the bank will contact you within 3-4 working days to discuss the next steps.
Offline
Offline applications can be made by visiting the branch of your choice or by downloading the application form from the bank’s website. The applicant can go to the branch and start the application procedure with the assistance of a bank representative. Once the paperwork is completed, the bank’s loan officer can assist the farmer with the loan amount.