Kisan Credit Card Information:
The following information is all about Kisan Credit Card for Farmers.
Kisan Credit Card Scheme
The Kisan Credit card is the credit system introduced in 1998 by the Reserve Bank of India and NABARD. This system offers quick credit delivery and helps the farmers to receive timely access to affordable credit. The main objective of the Kisan Credit Card is to provide easily accessible short-term credits to the farmers during their crop season. Through this scheme, the government and banks offer short-term credits to the farmers in India during the planting and harvesting seasons. This system will reduce farmers’ dependence on money lenders or other financial institutes that charge high interest. And this credit card system simplifies the credit card delivery and screening process for the farmer who found difficulty in banks practices and procedures.
The Kisan Credit cards are offered by cooperative banks, public sector banks, and regional banks. This card can be taken by any farmer in India. And the payment mode of the Kisan credit card is very flexible, farmers can pay after the harvesting, or in case of a bad crop, the payment can be postponed to the next season by paying interest.
Kisan Credit Card (KCC) offers two types of credit to farmers is Cash Credit and the other is Term Credit.
Cash Credit is offered for Irrigation activities like buying seeds, Fertilizers, Pesticides, and pre-harvesting, and post-harvesting activities.
Term Credit is offered for allied activities such as pump sets, land developments, plantation, and drip irrigation.
Advantages of Kisan Credit Card
- Kisan Credit Card is available to small and marginal farmers, sharecroppers, and tenants.
- The documentation process for KCC is very simple and quick. KCC requires only one-time documentation, and for every crop, season documentation is based on crops selected by the farmers.
- The farmer can withdraw the card or can take loans.
- The Kisan credit card limit is based on your land values, income, and the credit history of the farmer.
- The Kisan Credit Card offers quick and timely credit.
- This Kisan Credit Card (KCC) scheme has a very simple documentation and screening process.
- The Kisan Credit card has a flexible payment schedule, you pay the credit after harvesting or can reschedule the payments in case of a bad crop.
- The Kisan Credit Card offers insurance coverage to the farmers.
- And the main benefit of KCC is it simplifies the loan process of farmers who are not aware of banking procedures.
- Now the Kisan credit card is linked to the saving bank account of the farmers. And any credit balance in the account can earn interest.
- National crop insurance is offered to the Kisan Credit Cardholders, which covers the crop loans under KCC.
- KCC offers credit at very low-interest rates.
- KCC credit holders are covered under personal accident insurance up to Rupees 50,000 for death and permanent disability, and up to Rupees 25,000 for other risks.
Main Features of KCC
- Farmer with production credit of rupees 5000 or more is eligible for the Kisan credit card scheme (KCC).
- KCC Farmers are offered a passbook or card-cum passbook.
- Within the credit limit, the Credit revolving facility is available for all cash withdrawals and repayments.
- The KCC credit limit is set upon your individual landholdings and production rate and credit needs.
- There is a facility to increase the credit limits in case of a change in cropping pattern or increase in costs.
- There is an option to reschedule the loan in case of crop damage due to natural disasters or pest attacks.
- For acquiring the Kisan credit card the security, credit limit, the interest rate will be set as per RBI norms.
- The Kisan Credit card will valid for up to 3 years based on the annual review.
How to Use Kisan Credit Card
Using the Kisan credit card the farmer can withdraw the loan amount in the form of cash using card or withdrawal slips or using card cum passbook. KCC holders with a credit limit of 25,000 rupees can even get Cheque books.
How KCC Works
The KCC is the same as other ATM or Credit cards or driving insurance cards. Banks offer credit cards along with the passbook that has complete details of the cardholder (details like name, address, credit limit, and validity).
A farmer using KCC can withdraw the cash for agricultural expenses like buying seeds, pesticides, fertilizers, electricity, and diesel charges. KCC offers term loans for buying agricultural equipment, drip irrigations, and plantation,s, etc.
Interest Rates On Kisan Credit Cards
Interest rates on credit by KCC vary from bank to bank. The applicable interest rate per annum for KCC is 7 to 9 %, for the maximum credit limit is about 3 lakhs. The Government allows certain subsidies on interest applied by banks if the cardholders have a good credit history.
The interest subsidy of 2% is provided if the cardholder has a good credit track record for three years and is also eligible for an increase in credit limit.
Other additional charges included in issuing Kisan Credit Card are Insurance premium, processing fees, charges on land mortgage deed, etc.
Read this: Agriculture Loans.
Insurance Under KCC
- To avail, the insurance coverage the Kisan credit cardholder age should be below 70 years.
- Personal accident insurance will be covered for KCC holders.
- Personal accident insurance covers Rupees of 50,000 in case of death and Rupees 25,000 in case of disability.
Banks Offering Kisan Credit Card In India
- NABARD: It offers a Kisan credit card with terms loans and credit loans for farmers at very low interest.
- SBI (State Bank of India): SBI offers KCC for farmers for agricultural expenses and allied activities.
SBI KCC card Limit: Rupees 50,000 based on farmer’s income.
Repayment period: 12 months.
- Axis Bank: Axis Bank offers farmers, both the term loan or a cash credit with flexible repayment options and tenures.
Credit Limit up to 250 lakhs.
Loan tenure: For cash credit, the tenure is one year and for a term loan, tenure is 7 years.
Axis bank Kisan Credit card interest Rate- 9.90 % to 13.65%.
- Bank of India: Bank of India offers KCC to provide timely credit support to the farmers for their agricultural needs and allied activities.
Credit Limit: 25% of farmer’s gross estimated income or a maximum of Rs 50,000.
Loan tenure: More than 12 months.
Interest rate: 9%.
- IDBI: IDBI credit card that provides cash required for agriculture and allied purposes. The KCC loan scheme also covers expenses like electricity bills, diesel charges, agricultural equipment, and other financial expenses.
Credit Limit: credit card crop loan limit is 3 Lakhs.
The interest rate is 7%.
Loan Tenure: More than 12 months.
- Indian Overseas Bank: Indian Overseas bank offers a Kisan credit card for all types of farmers for all types of credit requirements for agricultural, post-harvest expenses, marketing loans, consumption requirements of farmer’s household, Livestock farming maintenance expenses, and investment requirement for allied activities.
Loan Amount: Loan amount depends on cropping pattern, the scale of finance for the crop, and the extent of cultivation.
Repayment period: Limit valid up to 5 years.
Interest rate: 7% for loans above 3 lakhs.
- ICICI Kisan Credit card: ICICI offer Kisan credit card for farmers to meet the agricultural requirements.
Card Limit: 25 lakhs.
Time-limited: Loans are sanctioned for up to 5 years.
Rate of interest: Min- 9.50% and Maximum 12.35%.
- Vijaya Bank Kisan Credit Card: Vijaya Bank offers Kisan credit cards to meet crop production as well as post-harvest, household and farm assets maintenance expenses, and also term loan requirements.
Interest rate: 7% for loans up to 3 lakhs.
Card limit: Up to 1 crore.
Repayment: Crop proceeds to credited to the account and annual review of the account.
Time: Up to 5 years.
- Andhra Bank Kisan Credit Card: Andhra Bank Kisan Credit card covers the production and cultivation needs of the farmers. It also provides the loans for investment needs to start dairy farms, poultry shelters, and allied activities.
Credit limit: Andhra Bank Kisan’s credit card limit is based on the cropping pattern, land value, farming output.
Repayments: Term loan should be paid within 5 years.
Interest Rate: Interest is determined as per the market conditions and other marketing trends.
And many other banks provide Kisan credit cards for the Famers. Even the cooperative bank, rural bank, society banks provide KCC for the farmers.
Kisan Credit Card to RuPay Cards:
The government now decided to convert the Kisan credit card to RuPay ATM cum Debut Kisan Credit Cards by all regional rural banks and cooperative banks. This conversion helps farmers to do their transactions digitally.
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