Kisan Credit Card Scheme – Benefits, Eligibility and Documents

Farming is a very difficult profession. It requires investing a lot of capital and other resources and waiting until the season is right. Even then, there are plenty of things that could go wrong – there could be less rain or a lot of rain that causes flooding, there could be a new bacteria/virus that kills crops and more. 

Amidst all this, farmers have to be engaged with their fields. And that needs financing. The Kisan Credit Card (KCC) scheme has been developed by NABARD so that farmers too could buy their required material with credit. The KCC plan was created to meet the credit requirements of farmers from the agriculture, fishery, and animal husbandry sectors.

Benefits of the Kisan Credit Card scheme

Here are some of the best features and benefits of the Kisan Credit Card scheme:

• The farmers are provided credit to meet their financial requirements for all kinds of activities, along with post-harvest expenses
• Credit is also provided for agricultural machines such as pumps or for cattle
• Farmers can take a loan up to ₹3 lakh
• Also provides insurance coverage of up to ₹50,000 in case of any permanent disability or death
• Certain eligible farmers are also issued a debit card and a savings bank account
• There are multiple and flexible repayment options
• Added assistance when buying fertilisers, pesticides, etc. as well as cash discounts from merchants
• The credit can be repaid once the harvesting season is over
• Credit is available for up to 3 years
• No collateral is needed for loans amounting up to ₹1.6 lakhs

Read more: How to increase your credit card limit?

Eligibility criteria for the Kisan Credit Card scheme?

Here are the eligibility criteria for the Kisan Credit Card scheme:

• Any farmer who is also an owner and cultivator
• People are in a group and are joint borrowers, who are also joint cultivators
• Sharecroppers or tenant farmers 
• Self-help groups (SHGs) or joint liability groups (JLG) of sharecroppers, farmers, tenant farmers, etc.
• Farmers who are involved in crop production or related activities

Documents needed to apply for the KCC loan scheme?

Here’s the list of documents needed for a Kisan Credit Card:

• A filled and signed application form
• Copy of ID proof (Aadhaar, Voter ID, Driving license)
• Copy of address proof
• Land documents
• Passport-sized photo
• Other documents if required by the bank

Read more: How to protect your credit card transactions from fraud?

How to apply for the KCC loan scheme?

Follow these steps to apply for your KCC loan scheme:

1. Visit the bank’s website 
2. Choose Kisan Credit Card from the options
3. Click on ‘Apply’
4. Read all the information
5. Fill out the application form
6. Click on submit
7. Your bank will get back to you in 2-3 days

What are the interest and other charges on the KCC loan scheme?

These are short-term credit offers, which are also very low on interest. The average rate of interest on KCC loan schemes is around 7%. However, for all the KCC charges and rate of interest related information, contact the bank itself.

PM Kisan Samman Nidhi Scheme

Under the new PM Kisan Samman Nidhi Scheme, all the farmers can now avail up to ₹6,000 per year as their income support. Moreover, all users who fall under the PM Kisan Samman Nidhi Scheme will also be able to use the Kisan Credit Card scheme.

How to Apply for a Kisan Credit Card under the PM Kisan Samman Nidhi Scheme

Here are the steps to apply for your Kisan Credit Card under the PM Kisan Samman Nidhi Scheme:

• Fill up the form
• Enter basic information such as land records and crop sown
• Submit the form to Common Service Centres, who will then transfer it to the banks

Kisan Credit Card Customer Care

For any concerns related to your Kisan Credit Card scheme, you can call these two toll-free numbers – 1800115526 or 011-24300606

How to Check Kisan Credit Card Balance

You can either check the Kisan Credit Card balance online, by logging in to the bank’s website or you can contact customer support for more details.

Read more: Factors that affect your credit score

FAQs on the Kisan Credit Card Loan Scheme

• What is the validity period of the Kisan Credit Card?

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

• What is the age requirement in order to apply for a Kisan Credit Card?

Applicants must be between 18 and 75 years of age.

• What is the interest rate applicable on the KCC?

For short-term credit, the interest rate is 7%.

• Why was the KCC scheme introduced?

This scheme was introduced to meet the needs of various farmers across the country.

• How does a bank determine the credit limit on a Kisan Credit Card?

The credit limit is decided based on the crop being cultivated, the proposed cropping pattern, household requirements, farm assets, extra expenses and more.

• Is the revolving credit facility available on a Kisan Credit Card?

Yes, revolving credit facility is available on a Kisan Credit Card.