Get Benefits At Home With The Government’s Special Facility For Farmers Thanks To The Kisan Credit Card

September 13, 2022 Exam oriented 0 Comments

Get Benefits At Home With The Government’s Special Facility For Farmers Thanks To The Kisan Credit Card

The Kisan Loans Card programme, run by the Indian government, gives farmers quick access to credit. NABARD developed the Kisan Loans Card (KCC) system, which was introduced in 1998 with the intention of giving farmers short-term formal credit (National Bank for Agriculture and Rural Development).

To make sure that the credit needs for farmers in the agricultural, fishery, and animal husbandry sectors were satisfied, the KCC plan was developed. This was accomplished by assisting them in obtaining short-term loans and giving them a credit limit to use for equipment purchases as well as other costs.

Benefits and Requirements for the Kisan Credit Card Program

The Kisan Credit Card Scheme has the following features:

Farmers will cover all costs associated with the post-harvest season in addition to their own financial needs.

Produce marketing loans as well as a loan of Rs. 3 lakh might be approved.

The interest rate for KCC loans begins as low as 2% and averages at 4%, thus farmers who use it are also spared from the exorbitant interest rates associated with the conventional loans provided by banks. With the use of this programme, farmers may pay back their loans in accordance with the crop’s harvesting season.

Farmers who qualify for the KCC programme will be given access to savings accounts with reasonable interest rates.

The KCC programme will provide a straightforward distribution process and flexible loan payback terms.

For loans up to Rs. 1.6 lakh, no collateral will be needed.

Credit will be offered for three years, with repayment possible after the harvest.

The government offers a number of interest rate-related incentives and programmes. The ability to get these subsidies is based on the cardholder’s credit history overall and repayment history.

The issuing bank will decide on fees and other costs, such as processing fees, land mortgage deed expenses, etc.

The cap will be determined based on operational land ownership, cropping patterns, and financial capacity.

The Card is valid for 5 years after which it will be reviewed every year. If the credit score is high, the card limit may be increased to cover additional expenditures such as increasing prices, unforeseen charges, changes in cropping patterns, etc.

Loans and conversions may be rescheduled if crop damage results from an unforeseeable incident, such as a natural disaster.

Criteria for Applying for a Kisan Credit Card

In order to apply for KCC, farmers must verify that they meet a few qualifying requirements. The eligibility list for KCC is shown below. Make sure you fall into one of the following groups.

The farmer requesting KCC must inhabit or dwell in the same country as the bank being requested.

Farmers who are sole or joint borrowers of the real estate being farmed.

Both cultivators and private landowners.

Farmers with oral leases, tenant farmers, and croppers (shared croppers) of cultivable areas.

Tenant farmers or sharecroppers may create joint liability or self-help organisations.

The farmers making the application must be able to raise a production credit of at least Rs. 5,000.

Farmers who must be at least 18 years old and no older than 75.

A co-borrower who is a legal heir is required if the borrower is older than 60.

Fishing and animal husbandry are also eligible for the Kisan Credit Card.

Marine fisheries:

It is necessary to have a registered boat or fishing vessel as well as a permit or licence to fish in estuaries or the open ocean.

Aquaculture and inland fisheries – Self-help organisations, JLGs, fish farmers, and women’s organisations are all eligible.

SHGs, JLGs, and tenant farmers of poultry, goats, sheep, and other animals should have sheds that are either their own or that have either passed away or are being leased.

Dairy: Sheds should be leased, owned, or rented by JLGs, SHGs, dairy producers, tenant farmers, and farmers.

Documents Needed to Apply for the KCC Program

properly completed and signed application form.

a copy of an identification document, such as a driver’s licence, voter ID, PAN card, or Aadhaar card.

A copy of a document proving your address, such as your driver’s licence, voter ID, or PAN card. The applicant’s present address must be included in the documentation for it to be accepted.

Land records.

a picture of the applicant the size of a passport.

additional papers, such as security PDC upon the issuing bank’s request.

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Application Procedure for the Kisan Credit Card

Both online and offline applications for the Kisan credit card are accepted.

Application Online

Visit the bank’s website to apply for the Kisan credit card programme.

Select the Kisan Credit Card from the list of choices.

The website will bring you to the application page if you choose the “Apply” option.

Complete the form with the necessary information, then click “Submit.”

An application reference number will be provided as a result.

If you are qualified, the bank will contact you for the next step in the process in 3 to 4 working days.

Employers Can Apply Online

You may submit an offline application by going to the branch of the bank of your choosing or by downloading the form from the website of the bank. With assistance from a bank staff, the applicant may go to the branch and start the application procedure. Once the requirements are complete, the loan officer at the bank may assist the farmer with the loan amount.

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