Benefits of Kisan Credit Card

One of the largest countries in the world in terms of farm output, India relies heavily on agriculture for its economy. At present, the country is the world’s second largest producer of rice and wheat, alongside several other dry fruits, pulses, vegetables, and more. The driving force behind this are the farmers, who continue to grow our food amid even the most adverse conditions, such as natural calamities, environmental whimsies, and more. 

To ease the load of farmers and lend them a hand of help, the Government of India introduced the Kisan Credit Card Yojana in 1998 to address financial challenges faced by them. The Kisan Credit Card makes funds readily available to the farmers to cater to pre, during, and post-harvest expenses. 

Benefits of Kisan Credit Card: 

The Kisan Credit Card benefits include enabling farmers to borrow credit in a simplified manner, a comfortable 12-month repayment schedule, and extension of credit limit for farmers with a strong repayment history, to name a few. Read on to know more about the benefits of Kisan Credit Card. 

• Under this scheme, farmers are issued a card which doubles up as a credit card and a debit card, and can be used to withdraw money from the ATM. 
• The card issued to the farmers is a magnetic stripe card with a PIN and an ISO IIN, enabling the uset to use the card at all bank ATMS as well as micro-ATMs. 
• The Government also provides 2% interest subvention and 3% prompt repayment incentive to the farmers, which lets the farmers avail credit at a reasonable interest rate of 4% per annum. 
• The scheme covers expenses such as cost required for cultivation of the produce, marketing of the produce, post-harvest expenses, capital required for maintenance of the farmer’s farm assets, and more. 
• The Kisan Credit Card has a repayment tenure of 12 months, allowing farmers to pay back the debt comfortably. 
• In case of damaged crop owing to a natural calamity, the repayment schedule can be altered. Additionally, this scheme allows the farmer the flexibility to pay their debt only once the harvest is complete. 
• The Kisan Credit Card limit can be extended for farmers with a good history of past repayment, after an annual review. 
• The application process and the documentation are simple and hassle-free, which allows more farmers to avail the benefits of Kisan Credit Card. 

Also Read- Best Credit Cards for Beginners in India

Kisan Credit Card Eligibility: 

The Kisan Credit Card eligibility factors are as follows. 

• Individual farmers or joint borrowers who are owner cultivators 
• Tenant farmers, oral lessers, and share croppers 
• Self-help Groups, Joint Liability Groups of farmers 

Apart from these, the applicant should be minimum 18 years and maximum 75 years of age, to be eligible to apply for a Kisan Credit Card. Any senior citizen applying for the same must have their legal heir as a co-borrower. 

How to apply for Kisan Credit Card? 

To apply for the Kisan Credit Card online, follow the steps below: 

• Choose the bank through which you would like to apply 
• Choose the Kisan Credit Card option, on the bank website
• Click on ‘Apply’
• You will be redirected to the application page 
• Fill the form displayed, and submit it 
• A reference number will be generated for you
• Wait for the bank to revert on your application 

To apply for the Kisan Credit Card offline, follow the steps below: 

• Download the application form from the bank’s website 
• Fill the form
• Submit it at the bank with the necessary documentation 

Also Read- What is a Lifetime Free Credit Card

What Documents Are Needed to Apply for the Kisan Credit Card? 

To apply for the Kisan Credit Card, you will need: 

• The application form 
• ID proof (Aadhar card/ voter ID card/ passport/ driving license) 
• Address proof ( driving license/ aadhar card) 
• Landholding proof (certified by the revenue authority) 
• Cropping pattern with acreage 
• Security documents (if the loan amount exceeds Rs 1.6 lakhs/ Rs 3 lakhs, as applicable) 
• Two passport size photographs 
• Any other document that might be mentioned on the application form or asked for by the bank authority 

To sum it up, the Kisan Credit Card was introduced as a means to extend financial support in the form of low-interest credit to farmers of our country, and is one of the most important schemes introduced by the government for the welfare of the farmers. In a country like India where a huge number of people rely on agriculture for their livelihood, such tools ensure that farmers have access to the funds they need, which in turn ensures smooth harvesting o crops.