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Kisan Credit Card

KCC Scheme Details

Last Updated 30th Jul 2021

  • Kisan Credit Card was introduced in 1998 to provide quick credit to farmers for purchasing seeds, fertilizers, agricultural machinery, etc.
  • The initial tenure of KCC is 5 years.
  • The interest rate on Kisan Credit Card starts from 2% and may go upto 4%.
  • Up to a specified limit, you do not require a collateral. The collateral-free threshold may, however, vary from bank to bank.
  • No restriction on cash withdrawal if it is within the credit limit prescribed.
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Kisan Credit Card (KCC)

The Kisan Credit Card scheme was implemented by NABARD (National Bank for Agriculture and Rural Development) and RBI (Reserve Bank of India). The main objective behind the scheme is to provide instant, short-term formal credit to farmers, especially at the time of planting and harvesting season. Over the years, the government has simplified the application process and the repayment process to reduce the debt burden of farmers.

Farmers can avail these credit cards at various cooperative banks, public sector commercial banks and rural banks.

Kisan Credit Card Details

The following are the key features of the Kisan Credit Card:

  • The Kisan Credit Card comes with insurance coverage by protecting against the loss of crops due to any natural calamity, pest attacks, etc.
  • The KCC also acts as an ATM cum debit card for all borrowers.
  • The loan amount for the first year is assessed based on the cultivation cost, post-harvest expenses and the cost of maintaining the farm.
  • For the next 5 years, the loan is extended based on the scale of finance.
  • The Kisan Credit Card helps farmers to avail easy credit to meet the financial requirements related to agriculture and allied activities.
  • No collateral is required for a loan up to ₹ 1.60 Lakh .
  • The KCC interest is charged on credit based on a simple interest method. It is for 1 year or up to repayment due date whichever is earlier.
  • In case of missed payment upto the due date, interest is charged based on half-yearly compounding for the repayment.

Features & Benefits of Kisan Credit Card Loan Scheme

Some other features & benefits of Kisan Credit Card Loan Scheme are mentioned below:

  • In addition to the Kisan Credit Card, the cardholders are issued a smart card cum debit card.
  • The Kisan Credit card provider yearly reviews the validity of the credit card.
  • In case the crops get damaged due to natural calamities, the conversion and rescheduling of loan is also permissible.
  • For any amount of withdrawals and repayment made throughout the year, the facility of revolving credit is available.
  • If the farmer has a good credit record and in some years there is a change in cropping pattern or increase in operation cost, the credit limit can be increased at the discretion of the issuing bank as an incentive for good credit habits.
  • There is minimal documentation and maximum flexibility associated with the withdrawal of required funds for the cardholder from the issuing bank.
  • There is no restriction on cash withdrawal as long as it is within the credit limit.

Credit Limit Available Through Kisan Credit Card

The credit limit offered on a KCC Loan Scheme is based on the cultivation of crops, household or post-harvest consumption requirements or expenses related to the maintenance of crop insurance, farm assets, Asset insurance etc. Below-mentioned is the credit limit available through top Kisan Credit Cards.

Kisan Credit Card Credit Card Limit
Axis Kisan Credit Card Up to ₹ 2.50 Lakh (in the form of a loan against the card)
BOI Kisan Credit Card Up to 25% of the farmer’s estimated income, Max Limit- ₹ 50,000
SBI Kisan Credit Card Based on the crop cultivation and cropping pattern
ICICI Kisan Credit Card As per the bank’s terms and conditions in accordance to RBI guidelines
HDFC Kisan Credit Card Up to ₹ 3 Lakh

Kisan Credit Card Eligibility Criteria

Kisan Credit Card is available only to those farmers and individuals who fulfills its eligibility criteria. These criteria are:

  • The age of the individual must be between 18 to 60 years at the time of applying for the scheme.
  • The individual or group of people should be owners of agricultural land.
  • If the individuals or the group is not the owner, they should have taken a rented land for cultivation.
  • The land in consideration has to be agriculturally active and must be generating crops.

The eligibility criteria for fisheries and animal husbandry under this scheme are:

  • The fish farmers, fishers, SHGs, JLGs and women groups are eligible, provided they own or lease any activity related to fisheries. This could mean owning or leasing a pond, an open water body, tank, a hatchery, etc.
  • The applicant owns a registered fishery boat or any other fishing vessel along with having the necessary permission for fishing in sea or estuary.
  • The applicant can be a farmer, a tenant farmer, SHGs, JLGs, and dairy farmer who either owns or lease or rent sheds.
  • Joint or individual farmers, SHGs, JLGs, or tenant farmers of rabbit, sheep, pigs, birds, poultry, along with having a shed which they either own, rent or leased.

How to Apply for Kisan Credit Card Online?

You can apply for the Kisan Credit Card online on the bank’s website or by visiting the bank branch with the necessary documents.

Following are steps for online application of Kisan Credit Card :

  • Visit the official website of the bank through which you want to apply for KCC.
  • Find the option of ‘Kisan Credit Card’ among the list of credit cards or under agricultural products or services.
  • Click on the ‘Apply’ button; you will be redirected to an application form.
  • Fill the form with all the required information accurately, and click on ‘Submit’.
  • After the application is submitted, you will get a reference number from the system, take note of that number for future queries.

Kisan Credit Card Interest Rate

The interest rate on Kisan Credit Card varies from bank to bank and may start as low as 2%. The rates charged on these loans may range upto 4% on the condition of timely payment.

Documents Required for KCC

To get a Kisan Credit Card, a farmer is required to furnish identity and address proof. Following is the list of approved documents for the same purpose:

Identity Proof

  • Voter ID
  • Passport
  • PAN Card
  • Person of Indian Origin Card
  • Job card issued under MGNREGA
  • Letter issued by UIDAI
  • Aadhaar Card
  • Driving License

Address Proof

  • Ration Card
  • Person of Indian Origin Card
  • Passport
  • Property Registration document
  • Job card issued under MGNREGA
  • Aadhaar Card
  • Driving License
  • Bank account statement or passbook.
  • Utility bill like Electricity bill or Water bill.

Revised Kisan Credit Card/PM Kisan Credit Card Yojana

RBI revised Kisan Credit Card Scheme as per the needs of the agriculture sector in 2012. As per these revisions, farmers are liable to get an electronic Kisan Credit Card. Along with that, RBI also made alterations in rules on repayment, disbursement and account classification. Also, as a KCC borrower, farmers could avail of a free smart debit card with the Kisan Credit Card.

FAQs

What is the process of a KCC loan?

Once you have applied for the KCC, the bank will assess your eligibility. If you are eligible, then you will be required to submit the required documents, the documents can either be submitted in the branch, or you can book an appointment to get it collected from your home. After successful verification for the documents, the card will be sent to your home address.

What is the validity period of the Kisan Credit Card?

The validity period of the Kisan Credit Card is 5 years.

What is the KCC limit?

The maximum limit of KCC varies with each bank. However, for the farmer, it is decided based on the estimated income of the farmer, the harvesting and cultivation pattern, etc.

What is a crop loan?

A crop loan is a short term loan advanced by the bank to farmers and agriculturalists to purchase of seeds, fertilizers, machinery, etc.

What is the interest rate on Kisan Credit Card?

The interest rate on the Kisan Credit Card starts from 2% and averages upto 4% depending on various factors including repayment and credit history etc.

Can we withdraw cash from a Kisan card?

Yes, you can withdraw cash from a Kisan Card as per the prescribed credit limit offered by the bank. The Credit limit varies from bank to bank based on factors such as estimated income of the farmer, the harvesting and cultivation pattern, etc.

Where can I use my Kisan Credit Card?

As per RBI, you can use Kisan Credit Card for purchase of fertilizers, seeds, pesticides etc, . It can also be used to avail credit for allied activities like buying equipment, land development and drip irrigation or any household expenses etc.

How much loan can I get on a Kisan Credit Card?

Farmers can get upto ₹ 3 Lakh on a Kisan Credit Card.


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