Finance

The Kisan Credit Card Scheme

kisan credit card

The Kisan Finance Card scheme is a government of India effort that provides farmers with quick access to financing. In 1998, NABARD launched the Kisan Finance Card (KCC) project with the purpose of providing farmers with short-term formal credit (National Bank for Agriculture and Rural Development). The KCC plan was developed to ensure that farmers in the agricultural, fishing, and animal husbandry sectors could obtain loans. 

This was accomplished by supporting them in securing short-term loans and granting them a credit limit for the purchase of equipment and other charges. Furthermore, because the interest is paid by KCC, farmers who use KCC are protected from the excessive interest rates offered by banks on conventional loans.

Eligibility Criteria

There is an eligibility criteria that an applicant needs to fulfil in order to obtain a Kisan Credit Card. The eligibility criteria for the same is as follows:

  • Any farmer who grows his or her own crops on his or her own property.
  • Individuals who are joint debtors and members of a group. Owner-cultivators must constitute the vast majority of the group.
  • Sharecroppers, tenant farmers, and oral lessees are all welcome at the KCC.
  • Self-help groups (SHGs) or joint liability groups (JLGs) are formed by sharecroppers, farmers, tenant farmers, and others (JLGs).
  • Farmers who cultivate crops or engage in related activities such as animal husbandry, as well as non-farm vocations such as fishing.

Charges Applicable on the Kisan Credit Card

The interest rate and credit limit on the KCC vary from one bank to the next. The interest rate at KCC, on the other hand, might be as low as 2% or as high as 4%. Furthermore, the government offers farmers specific interest rate subsidies and programmes. These would be established by the cardholder’s payment history as well as his or her overall credit history. The interest rate and credit limit on the KCC differ from bank to bank. The interest rate at KCC, on the other hand, could be as low as 2% or as high as 4%. In addition, the government provides farmers with specific interest rate subsidies and programmes. These would be determined by the cardholder’s payment history and overall credit history. Other costs and expenses, such as processing fees, insurance premiums (if applicable), and land mortgage deed charges, shall be set at the discretion of the issuing bank.

Features and Objectives of KCC

There are a lot of features as well as some objectives that come along with the KCC. The features of KCC are as follows:

  • This plan addresses a variety of farmer needs, such as cultivation/production demands, post-harvest costs, working capital for farm asset upkeep, and the procurement of agricultural supplies such as pesticides, seeds, fertilisers, and so on.
  • The KCC Scheme disburses loans in a completely hassle-free manner, with extremely low interest rates.
  • Under the KCC Scheme, the procedures are typically carried out through the issuing branch.
  • In the case of cooperative banks, the issuing branch can also be ‘Primary Agricultural Credit Societies’ or through other branches at the main bank’s discretion.
  • Crop loans obtained through the KCC Scheme for specific crops will also be covered by the Crop Insurance Scheme.
  • This is done to protect farmers’ interests in the event of agricultural devastation caused by natural catastrophes, pest infestations, and other circumstances. The Best thing is that you can now Compare banking plans before making your decision.
  • The KCC Scheme also protects cardholders from accidental death or permanent disability.

On the other hand, there are a few objectives of the KCC as well, that are as follows:

  • To help with post-harvest costs.
  • To provide operating finance for farm asset maintenance and agricultural activities.
  • Loans are required for capital expenditures in agriculture and related sectors (land development, pump sets, etc.).
  • Planting, drip irrigation, and so on.)
  • Consumption demands of farmers must be met.
  • To provide adequate and timely funding to farmers through the banking system at a reasonable interest rate.
  • Being able to grant credit when needed.

KCC is one of the best credit cards in India and also a very good alternative for individual, communal farmers and fish farmers as well. Along with these the marine fishermen, poultry or small ruminant owners, dairy farmers, and women organisations can also apply for the Kisan Credit Card. The main aim of the government to launch this card was to empower the Indian Farmers. 

KCC is an excellent option for individual, communal, and fish farmers alike. In addition, marine fishermen, poultry or small ruminant owners, dairy farmers, and women’s organisations are eligible to apply for the Kisan Credit Card. The government’s primary goal in launching this card was to empower Indian farmers.

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