The Kisan Credit Card is a credit facility provided by banks in India to farmers. It is a hassle-free and convenient way for farmers to get access to credit. The Kisan Credit Card scheme was launched by the Government of India in 1998-99. The main objective of this scheme is to provide financial support to farmers for their short-term credit needs. The Kisan Credit Card can be used for various purposes such as working capital requirements, purchase of inputs, and other agricultural activities.
The Kisan Credit Card scheme has been a great success in providing financial support to farmers. It has helped many farmers in meeting their working capital requirements and has also increased their income. The Kisan Credit Card scheme is a very useful tool for farmers and it is very easy to apply for it.
How to get PM Kisan credit card online?
Agriculture is the backbone of the Indian economy, and farmers are the key players in this sector. Despite the significant contribution of farmers, they face several challenges in terms of access to finance. Inadequate credit facilities, lack of collateral, and high-interest rates are some of the significant problems faced by farmers. To address these challenges, the Government of India launched the Kisan Credit Card (KCC) scheme in 1998. The Kisan Credit Card scheme provides affordable credit to farmers for their agricultural needs. This article will discuss the benefits of the Kisan Credit Card scheme and how it has helped farmers in meeting their financial needs.
What is Kisan Credit Card (KCC) Scheme?
The Kisan Credit Card (KCC) scheme is a government initiative that aims to provide affordable credit to farmers. The scheme was launched in 1998 by the Government of India to provide financial support to farmers for their agricultural needs. The KCC scheme offers credit facilities to farmers for crop production, post-harvest expenses, and other agricultural activities.
Eligibility for Kisan Credit Card:
The eligibility criteria for Kisan Credit Card are as follows:
- All farmers, including sharecroppers, tenant farmers, and oral lessees, are eligible to apply for KCC.
- The applicant must be a resident of India.
- The applicant should own or lease agricultural land.
- The age of applicant should be between 18 to 75 years.
Benefits of Kisan Credit Card:
The Kisan Credit Card scheme has several benefits for farmers, some of which are as follows:
- Affordable credit: The KCC scheme provides affordable credit to farmers at a low-interest rate of 4% to 7% per annum. This low-interest rate helps farmers in meeting their financial needs at a lower cost.
Flexibility: The KCC scheme offers flexible repayment options to farmers, which means that farmers can repay the loan amount at their convenience. - Multiple withdrawals: Farmers can make multiple withdrawals within the credit limit of their KCC account. This feature allows farmers to meet their financial needs as and when required.
- Insurance coverage: The KCC scheme provides insurance coverage to farmers against accidental death or disability. The insurance coverage is available up to Rs. 2 lakhs.
Easy access to credit: The KCC scheme provides easy access to credit to farmers, which means that farmers can avail of credit facilities without much hassle.
How to Apply for Kisan Credit Card?
Farmers can apply for Kisan Credit Card by following the below-mentioned steps:
- Visit the nearest bank branch that offers KCC facilities.
- Collect the application form for KCC.
- Fill out the application form with the necessary details.
- Attach the required documents such as land ownership proof, identity proof, and address proof.
- Submit the application form along with the required documents to the bank.
Frequently Asked Questions (FAQs) about Kisan Credit Card:
Q. What is the validity period of the Kisan Credit Card?
A. The validity period of the Kisan Credit Card is five years.
Q. Can farmers withdraw cash from their Kisan Credit Card account?
A. Yes, farmers can withdraw cash from their Kisan Credit Card account.
Q. What is the interest rate on Kisan Credit Card?
A. The interest rate on Kisan Credit Card varies from bank to bank, but it generally ranges between 4% to 7% per annum.
Q. Can farmers use Kisan Credit Card for non-agricultural purposes?
A. No, Kisan Credit Card can only be used for agricultural purposes.
Q. Can farmers get insurance coverage under Kisan Credit Card?
A. Yes, farmers can get insurance coverage under Kisan Credit Card against accidental death or disability.
| Topic | Features |
| Kisan Credit Card Scheme | Launched by Government of India, administered by banks |
| Types of Kisan Credit Cards | KCC - General, KCC - Personal Accident Insurance, KCC - Animal Husbandry |
| Credit limit | Based on the scale of finance, subject to the repayment capacity of farmer |
| Repayment period | Minimum of 6 months, maximum of 5 years |
| Security/Collateral | Hypothecation of crops/produce, mortgage of land, or third-party guarantee |
| Documents required | Identity proof, address proof, land ownership proof, crop details |
| Loan disbursal process | Direct credit to the bank account of the farmer, or through Kisan Credit Card |
| Interest subsidy | Available to eligible farmers on prompt repayment of loans |
| Credit Guarantee Fund Trust | Provides guarantee cover to banks against default by farmers |
| Role of NABARD | Facilitates refinancing of KCC loans to banks, provides technical assistance |
| Online portal | Farmers can access their Kisan Credit Card account online for checking account balance, statement, and transactions. |
Conclusion:
The Kisan Credit Card scheme is a significant initiative by the Government of India to provide affordable credit to farmers. The scheme has several benefits, including low-interest rates, flexible repayment options, and insurance coverage. The KCC scheme has helped farmers in meeting their financial needs and has improved their standard of living. The scheme has played a crucial role in boosting agricultural production and promoting rural development. Therefore, more farmers should avail the benefits of the Kisan Credit Card scheme to improve their financial status and contribute to the growth of the Indian economy.