Kisan Credit Card
Details
- The KCC Scheme was introduced with the objective of providing adequate and timely credit to the farmers for their agricultural operations.
The Government of India provides interest subvention of 2% and Prompt Repayment Incentive of 3% to the farmers, thus making the credit available at a very subsidized rate of 4% per annum.
The scheme was further extended for the investment credit requirement of farmers viz.
allied and non-farm activities in the year 2004 and further revisited in 2012 by a working Group under the Chairmanship of Shri T. M. Bhasin, CMD,
Indian Bank with a view to simplify the scheme and facilitate issue of Electronic Kisan Credit Cards. The scheme provides broad guidelines to banks for operationalizing the KCC scheme.
Implementing banks will have the discretion to adopt the same to suit institution/location-specific requirements.
1. Withdrawal through ATMs / Micro ATM
2. Withdrawal through BCs using smart cards.
3. PoS machine through input dealers
4. Mobile Banking with IMPS capabilities / IVR
5. Aadhaar enabled Cards
Benefits
-
- The short-term limit to arrive for the first year: For farmers raising a single crop in a year: Scale of finance for the crop (as decided by District Level Technical Committee) x Extent of area cultivated + 10% of limit towards post-harvest / household/consumption requirements + 20% of limit towards repairs and maintenance expenses of farm assets + crop insurance, PAIS & asset insurance.
- Limit for second & subsequent year: First-year limit for crop cultivation purposes arrived at as above plus 10% of the limit towards cost escalation/increase in the scale of finance for every successive year ( 2nd, 3rd, 4th and 5th year) and estimated Term loan component for the tenure of Kisan Credit Card, i.e., five years.
- For farmers raising more than one crop in a year, the limit is to be fixed as above depending upon the crops cultivated as per the proposed cropping pattern for the first year and an additional 10% of the limit towards cost escalation/increase in the scale of finance for every successive year (2nd, 3rd, 4th and 5th year). It is assumed that the farmer adopts the same cropping pattern for the remaining four years also. In case the cropping pattern adopted by the farmer is changed in the subsequent year, the limit may be reworked.
- Term loans for investments towards land development, minor irrigation, purchase of farm equipment and allied agricultural activities. The banks may fix the quantum of credit for the term and working capital limit for agricultural and allied activities, etc., based on the unit cost of the asset/s proposed to be acquired by the farmer, the allied activities already being undertaken on the farm, the bank’s judgment on repayment capacity vis-a-vis total loan burden devolving on the farmer, including existing loan obligations.
- The long-term loan limit is based on the proposed investments during the five-year period and the bank’s perception of the repaying capacity of the farmer
- Maximum Permissible Limit: The short-term loan limit arrived for the 5th year plus the estimated long-term loan requirement will be the Maximum Permissible Limit (MPL) and treated as the Kisan Credit Card Limit.
Eligibility
- Farmers - individual/joint borrowers who are owner cultivators;
- Tenant farmers, oral lessees & share croppers;
- Self Help Groups (SHGs) or Joint Liability Groups (JLGs) of farmers including tenant farmers, share croppers etc
QULIFICATION
Application Form.
Two Passport Size Photographs.
ID proof such as Driving License / Aadhar Card / Voter Identity Card / Passport.
Address Proof such as Driving License, Aadhar Card.
Proof of landholding duly certified by the revenue authorities.
Cropping pattern (Crops grown) with acreage.
Security documents for loan limit above Rs.1.60 lakhs / Rs.3.00 lakhs, as applicable.
online
- Visit the website of the bank you wish to apply for the kisan credit card scheme.
From the list of options, choose the Kisan Credit Card.
On clicking the option of ‘Apply’, the website will redirect you to the application page.
Fill the form with the required details and click on ‘Submit’. On doing so, an application reference number will be sent.
If you are eligible, the bank will get back to you for the further process within 3-4 working days.
ofline
1.Offline applications can be done by visiting the branch of the bank of your choice or by downloading the application form from the website of the bank as well.
2.The applicant can visit the branch and begin the application process with the help of the bank representative.
