Kisan Credit Card (KCC): Credit Support To The Farmer | Check Eligibility & Apply Online/Offline.

The Kisan Credit Card (KCC) was introduced to provide adequate and timely credit to the farmers for their agricultural operations. The government of India provides interest subvention of 2% and a Prompt Repayment Incentive of 35 to the Farmers, thus making the credit available at a very subsidized rate of 4% per annum.

Kisan Credit Card (KCC) Scheme

1. The scheme was further extended for the investment credit requirements of farmers, viz. allied and non-farm activities, in the year 2004 and further revisited in 2012.
2. The Kisan Credit Card (KCC) Scheme is implemented by the Ministry of Agriculture and Farmer’s Welfare, Government of India, in association with NABARD (National Bank for Agriculture and Rural Development) % MANAGE.
3. The Kisan Credit Card scheme aims to provide farmers with timely and adequate to meet their production credit needs (cultivation expenses) as well as meeting contingency expenses and expenses related to ancillary activities through a simplified process facilitating the borrowers in availing loans as and when they need them.
4. The scheme provides broad guidelines to banks for operationalizing the KCC scheme. Implementing banks will have the discretion to adopt the same to suit institution/location-specific requirements.

Purpose of Loan

The Kisan Credit Card (KCC) Scheme aims to provide adequate and timely credit support from the banking system under a single window with flexible and simplified procedures to the farmers for their cultivation.

1. To meet the short-term credit requirements for the cultivation of crops.
2. Post-harvest expenses.
3. Produce market laon.
4. Consumption requirements of farmer households.
5. Working capital for maintenance of farm assets and activities allied to agriculture.

Type of Card

1. A magnetic stripe card with a PIN (Personal Identification Number) with an ISO IIN (International Standards Organization International Identification Number) to enable access to all bank’s ATMs and micro ATMs.
2. In cases where the Banks would want to utilize the centralized biometric authentication of UIDAI (Aadhar authentication), debit cards with magnetic stripe and PIN with ISO IIN with biometric authentication of UIDAI can be provided.
3. Banks may choose to issue EMV (Europay, MasterCard and VISA, a global standard for the interpretation of integrated circuit cards) and RUPAY-compliant chip cards with magnetic stripes and pins with ISO IIN.
4. Further, biometric authentication and smart cards may follow the common open standards prescribed by IDRBT and IBA.

Delivery Channels

The following delivery channels shall be put in place to start with so that the Kisan Credit Card is used by the farmers to effectively transact their operations in their KCC account.

1. Withdrawal through ATMs/Micro ATM.
2. Withdrawal through BCs using smart cards.
3. PoS machine through input dealers.
4. Mobile Banking with IMPS capabilities/IVR.
5. Aadhar enabled Cards.

Benefits Provided By GoI

The Interest subvention of @2% and prompt repayment incentive benefits @3% on the KCC loan (i.e. crop loan + working capital loan for animal husbandry and fisheries) will be available on an overall limit of Rs.3.00 lakh per annum and subject to a maximum limit of Rs.2.00 Lakh per farmer involved in activities only related to animal husbandry and/or fisheries.

Fixation of credit limit/loan amount:

The scale of finance for the crop (as decided by District Level Technical Committee) × Extent of area cultivated + 10% of limit towards post – harvest/household/consumption requirements + 20% of limit towards repairs and maintenance expenses of farm assets + crop insurance, PAIS & asset insurance.

Limit for Second & Subsequent Year:

The first-year limit for crop cultivation purposes arrived at as above plus 10% of the limit towards cost escalation/increase in the scale of finance for every successive year (i.e. 2nd/3rd/4th and 5th year) and estimated Term loan component for the tenure of Kisan Credit Card, i.e., Five Years.

The long-term loan limit:

The long-term loan limit arrived for the 5th year, plus the estimated long-term loan requirements will be Maximum Permissible Limit (MPL) and treated as the Kisan Credit Card Limit.

Note: Wherever the card limit/liability so arrived warrants additional security, the bank may take suitable collateral as per their policy.

Applicable Interest Rate

The interest rate will be left to the discretion of the bank. However, according to the KCC circular dated 20 April 2012, the interest rate is 7% p.a on short-term credit with a Rs.3.00 lakh upper limit on the principal amount.

Applicant Eligibility

1. Farmers Individuals who are owner cultivators.
2. Farmers- Joint borrowers who are owner cultivators.
3. Tenant farmer, oral lessees & share croppers;
4. Self Helps Groups (SHGs) or Joint Liability Groups (JLGs) of farmers, including tenant farmers, sharecroppers, etc.

Also Read This: E-Kisan Upaj Nidhi: Finance Against Pledge of Warehouse Receipts (NWR) | Scheme For Farmers.

Loan Eligibility 

1. Loan Amount Eligibility: Based on Finance considering Cropping Pattern, Acreage, and Scale of Finance (SOF).
2. Interest subvention/incentive: For prompt repayment available as per norms.
3. Card Validity: The card should be normally valid for 5 years, subject to annual review.
4. Annual Review: This might lead to the continuation of the facility, enhancement of the limit or cancellation of the limit/withdrawal of the facility, depending on the performance of the borrower.
5. Hypothecation of Crops: Up to rs. 1.60 lah – collateral free, Margin Up to Rs.1.70 lakh – NIL.

The scheme tends to promote credit support to farmers for agricultural inputs such as seeds, fertilizers, pesticides, etc. and help them access funds for their production needs.

Required Documents 

1. Application Form.
2. Two Passport Size Photographs.
3. ID proof such as Driving License/ Aadhar Card/ Voter Identity Card/Passport.
4. Address Proof such as a Driving License. Aadhar Card.
5. Proof of landholding duly certified by the revenue authorities.
6. Cropping patterns (Crops grown) with acreage.
7. Security documents for loan limit above Rs.1.60 lakhs/Rs.3.00 lakhs, as applicable.
8. Any other document as per sanction.

Application Process

Offline Process:

1. Offline applications can be made by visiting the branch of the bank of your choice or by downloading the application form from the website of the bank as well.
2. The applicant can visit the branch and begin the application process with the help of the bank representatives.

Online Process:

1. Visit the website of the bank you wish to apply for the Kisan Credit Card Scheme.
2. From the list of options, choose the Kisan Credit Card.
3. On clicking the option of ‘Apply’, the website will redirect you to the application page.
4. Fill out the form with the required details and click on ‘Submit’.
5. In doing so, an application reference number will be sent. If you are eligible, the bank will get back to you for further processing within 3-4 working days.

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FAQs

Source & Reference 

https://www.jansamarth.in/kisan-credit-card-scheme_pl

https://pib.gov.in/FactsheetDetails.aspx?Id=148600&reg=3&lang=1

https://www.myscheme.gov.in/schemes/kcc

https://sbi.co.in/web/agri-rural/agriculture-banking/crop-loan/kisan-credit-card