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Kisan Credit Card Scheme: Benefits, Eligibility, Online application

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Kisan Credit Card Scheme

India is an agriculture-oriented country.  Overall 54% of the population associated with agriculture work. Most of GDP comes from the agriculture sector. However, the agricultural sector is the main backbone of the Indian economy. As per the 2018 result, more than 50% employed in agriculture. And 16-18% of the GDP comes from the agriculture sector. So, farmers are the most important part of our life. But the farmers always faced so many problems also they attempt suicide.

For resolving their problems govt took so many schemes.  And after independence central government passed so many schemes for the farmer such as pradhan Mantri Kisan maandhan yojana, Kisan credit card, pm Kisan scheme, pradhan Mantri fasal bima yojona, pashu kisan credit card scheme, etc. So, the kisan credit card scheme is one most innovative schemes provided by the central government. DAC & FW has launched PM KISAN, an income support scheme for all landholder farmer families in the country.

As per the 2019 update, the central government of India is successful to reach out overall one crore farmers within 100 days by the kisan credit card yojana. KCC loans provide the farmers a credit so they can avoid informal borrowing.  For this credit card, every farmer gets a very low-interest loan. In this context, a lot of questions may come to your head, such as, “what is kisan credit card?”, “how to apply for kisan credit card?”, “where I get kisan credit card application form?”, “from where I can find kisan credit card online application?” To access the scheme, learn more about it, its benefits, eligibility, and online application.

#What is a kisan credit card (KCC)??

Therefore, Kisan credit card is a very low-interest rate loan for the farmers that every farmer can access from any Indian bank.  Bank also provided a passbook to the farmers which contained the details of loan holding, loan limit, and beneficiary. So, not only government banks provide the loan all Indian banks like commercial banks, state co-operative banks, or rural banks also provide this loan.

#What is a kisan credit card scheme?

In August 1998 the national bank of agriculture and rural development passed a credit scheme to provide loans for the farmers by the recommendations of R.V GUPTA which is known as kisan credit card loan. Its objective is to support the farmers financially. Farmers are always faced with pressure from the informal sector for taking high-interest funding. To tackle this problem the government passes the kcc loan for the farmers, so the farmers can buy seeds, pesticides, fertilizer, and so on.

#All details about kisan credit card scheme

 With all eligible documents, a farmer can get KCC loans up to Rs.3 lakhs which have been waived off by Indian Banks Association (IBA). Banks have been instructed to issue KCC within 14 days of receipt of the completed application from farmers. Directions were issued by the Department of Financial Services (DFS) to all banks vide their letter no NO.3/7/2019 dated 4th February 2019 to ensure the issue of KCC within two weeks of submission of KCC applications.

However, more than 9.7 crore farmer families have been registered for the scheme and more than 8.4 crore farmers are benefited. There are at present 6.67 crore active KCCs in the country.

#Relation between PM KISAN beneficiaries with KCC loans

The GOVT of India make a decision to provide all the benefits of KCC to all the PM-KISAN beneficiaries with a mission to ensure coverage of the maximum number of farmers for a 15 days special movement starting from the day of 8th February in the year 2020 is being initiated.

During this movement, the following proposals are derived:

  1. There is a request to all PM-KISAN beneficiaries that they contact the bank branches where their pm-Kisan accounts are opened and reissuing the card to get the benefits of the new scheme KISAN CREDIT CARD.
  2. Those farmers with inactive KC card also approach the bank branch for activation the process
  3. Those without KCC cards also may approach the bank with land records with a photocopy.
  4. Those who have KC but want inclusion of admissible enhanced limit for livestock and fisheries may do so.

The government of India requested all bank branches to prepare a list of all PM-KISAN beneficiaries and a list of KCC beneficiaries so you can prepare a list of those PM-KISAN beneficiaries who don’t have KCC.

#All benefits and key- points of kisan credit card

1.       With the help of credit farmers can buy their financial materials for farming and also do post-harvest expensive activities.

2.       They can also invest on agricultural requirements like animals or pump sets etc.

3.       With the help of pm kisan credit card farmers get a loan of up to 3 lakhs rupees so they can repay their marketing loans.

4.        Kcc scheme holders get insurance coverage up to rs 50000 for personal accidents and death and are covered up to rs25000 for any other risk.

5.         You get easy repayment options and simple disbursement procedure.

6.       Term loan or single credit facility for ancillary and agriculture requirements.

7.       You get cash discounts for purchasing seeds, fertilizers from the merchants.

8.       The credit period is 3 year so after that you are able to do repayment.

9.       Eligible holders can be issued a savings bank account with some attractive interest rates and also get a debit card and smart card.

10.   However, there is no requirement of mortgage for loans up to rs 1.60 lakh.

#Eligibility Criteria required for kisan credit card loan

There is some eligible criteria which may you follow for kisan credit card apply:

  •  All individual farmers can get the loan but he must be an owner of his cultivator
  • Joint liability groups or self-help groups of sharecroppers, tenant farmers, and farmers, etc.
  • All tenant farmers, sharecroppers are eligible.
  • If any group has a cultivator and the group is the owner then the group can be eligible for KCC.
  • Those farmers who belong to allied activities or nonfarm activities such as animal husbandry or fishery are eligible for KCC.

#Eligible candidates under animal husbandry and fisheries are:

  • Aquaculture and Inland Fisheries: fishers, fish farmers, women groups, SHGs, and JLGs are in the group. As a beneficiary, you must be related to fisheries. Such as, the owner of a pond or open water body etc.
  • Marine fishers: you must have your own boat or any other kind of fishing vessel and you must have the license for fishing in the area or the sea.
  • Dairy: dairy farmers, farmers, tenant farmers, JLGs, and SHGs who own or rent sheds.
  • Poultry: individual farmers, joint borrowers, tenant farmers of sheep, goats, rabbits, pigs, poultry, and birds have shed and the owner of the cultivator.

#Terms & conditions for KCC loans

  1. All beneficiaries shall have to fill the one-page simplified form giving their land details record, crop details, and a declaration that they do not have the benefit o KCC from others banks.
  2. This simplified form is available on all the scheduled commercial banks  (SCBs) websites, website of this section ( www.agricoop.gov.in) or portal of PM-KISAN ( link:www.pmkisan.gov.in
  3. Those beneficiaries whose PM-KISAN credit limit is not more than Rs 1.6 lakh should issue a KCC with an approved limit. Those candidates whose credit limit is greater than Rs. 1.6 lakh also approved for KCC but the limit will be decided only of the completion of legal actions for the mortgage.

#Interest rate and bank eligibility for applying kisan credit card scheme

Kisan Credit Card loan scheme is a very low interest bearing loan. Kisan Credit Card interest rate is 2% to 4%. But from 2020 the interest rate is 7% up to the loan amount of Rs. 3.00 lacs. And above Rs. 3.00 lacs the interest rate is applicable from time to time.

Also there are such subsidies offered by the government to the farmers with affordable interest rates. But the interest rate should depend on the credit history and repayment history of that cardholder.

Other charges like processing fees, land mortgage charges; insurance premium etc. is dependent on the issuing bank.

All Indian banks are eligible to provide KCC loans. You can get the credit card from any Indian bank such as STATE BANK OF INDIA, PUNJAB NATIONAL BANK, BANK OF BARODA etc.

#Kisan credit card limit of several Indians banks

There are such top kisan credit card provider banks with their credit limit and maximum tenure.

1.       Axis Kisan Credit Card- from this bank any farmer can get Rs. 2.50 lakh in the form of cash. The maximum tenure is 1 year to 7 year.

2.       BOI kisan Credit Card- any farmer can get 25% of their estimated income. But it must be under Rs.50, 000.

3.       SBI Kisan Credit Card- credit limit of this bank depended on the cropping pattern and crop cultivation. The maximum tenure of this bank is 5 years.

4.       ICICI Kisan Credit Card- this bank follows its terms and condition by the guidance of RBI. The maximum tenure is 5 years.

5.       HDFC Kisan Credit Card- the credit limit is up to Rs. 3 lakh. The maximum tenure is 5 years.

#Repayment period of kisan credit card loan

Because of insignificant pressure in the agriculture sector most of the banks which are eligible for kisan credit card loans are searching for longer repayment tenure. In west Bengal the state level bankers met and proposed to increase the time of loan repayment and for this the period is increased to 3 year or 4 year from 1 year.

In the state level interbank meeting, there were 9 important issues such as digital banking, credit offer to the agriculture sector, direct transfer, educational loans etc.

#Documents required for pm kisan credit card yojana

  • Proper signed-in and filled-in application form
  • Copy of the applicant’s identity proof like Aadhar card, Voter ID, PAN card, driving license. The documents must be valid on the current address of the applicant
  • Copy of address proof such as Voter ID card, PAN card, Aadhar card, electricity bill which occur the proper and present address.
  • Land documents
  • Passport size photo of the beneficiary
  • For security purposes, some of the banks demanded PDC.

#How to get kisan credit card

If your documents are okay for the eligibility of KCC loan you can apply online or offline. You can contact your nearest bank which provides this loan or you can visit their website and apply for the loan.

#How to apply kisan credit card

You can apply for the loan online or offline. You can visit the website of the bank and check all the details if you are eligible then you can apply or if you want to process this through offline you can contact with the bank.

#Kisan credit card online apply

If your documents are okay and proper for the loan you can apply for the scheme in an easy process such as an online process. If you have any android mobile or any desktop then you can apply for this by yourself and if you don’t have any of them then you should go to a cyber café and apply online. The following steps are for Kisan Credit Card Online apply:

Online process steps-

  • First, choose your suitable bank and visit their website for the scheme
  • From the options list, select Kisan Credit Card
  • After clicking on the “Apply” option the website will show you the application page
  • Then fill the application form correctly with the required details then click on the “Submit” option.
  • After doing this you get a reference number
  • If you are eligible and selected for the loan the bank will contact you within 3 to 4 working days.

Here is an example of the online process. If you are liked to apply from SBI bank here is some details about it:

#SBI kisan credit card

SBI is the No 1 commercial bank of India. It provides adequate credit to the farmers for their production credit needs.

Key features

  • 5 years tenure, with a 10% annual increase of limit.
  • Up to Rs.3.00 lacs loan amount, the interest rate is 3%.
  • The repayment period is the crop period.

Insurance:

  • Below 70years of age, KCC borrowers are getting personal accident insurance scheme (PAIS)
  • The crops which are eligible are under PRADHAN MANTRI BIMA YOJANA (PMFBY)

Interest rate:

  • 7% up to Rs. 3.00 lacs
  • Above Rs. 3.00 lacs the interest rate applicable from time to time.

Others benefits:

  • All KCC borrowers get the RuPay cards
  • The Rupay cardholders also cover the accidental insurance of Rs. 1.00 lakh if the card is activated in 45 days.

Offline

One can apply for the loan offline. For this purpose you can visit the bank and contact the bank employees. You can also download the application form from the website of the bank. Then you fill up the form correctly. With the required documents you can submit the form to the bank. After the formalities are done, the bank will contact with the loan amount which the farmer may get.

Kisan credit card helpline number

After choosing the suitable bank you can visit their website and from there you can get the helpline number. So, you discussed your issue with the bank

#Other questions

In this context, you may have some questions such as:

How long will it take for approval the loan?

After submitting the application form the bank will contact you within 4 or 5 working days if your documents are okay and you are eligible for the loan.

Time validity of kisan credit card?

The tenure period depends on the eligible bank. But the proper validity time is 5 years.

Age requirement for kcc loan?

The applicants must be a minimum age of 18 years and maximum75 years old. So, if the applicant is a senior citizen then he/she must have a co-borrower who is a legal heir.

In how many days I will get my credit card?

After getting the confirmation of KCC loans you get the card after 2 or 3 weeks through the time period is dependent on the banks.

Can I check my card balance and how?

Yes! You can check your credit balance. For this, you should contact the public sector bank’s customer service center which bank provides you the loan. Also, you can visit the bank to your balance.

 Is there any revolving credit facility?

Yeah, here you get a revolving credit facility on your card that’s why you can do unlimited withdrawals and repayments according to your credit limit.

How do we check our credit limit for eligibility of the loan?

The KCC loan credit limit basically based on:

  • The cultivation of crop and the cropping pattern
  • Requirement of household consumption
  • Expenses related to maintaining the crop insurance, asset insurance, farm assets, and PAIS.

#All India results of Kisan Credit card

1.       UTTAR PRADESH:  Yogi Adityanath, chief minister of Uttar Pradesh announced that credit cards are given to farmers with smallholdings. 2.5 million Farmers are eligible for the loan. So, around 12 lakh farmers are getting the loan.

2.       MEGHALAYA:  in Meghalaya more than 85000 farmers get the loan with the interest rate of 2%.

3.       1.82 crore loans are issued till 29th February, 2020.

4.       According to the finance minister Rs. 75,000 crore

5.     MAHARASHTRA: total number of holding persons is 14,707,000. And the number of eligible candidates for KCC loans is 6,415,573.

Conclusion

However, if your documents are eligible for the scheme then contact the nearest bank as early as possible. So, you can get a loan and invest in your farming.  Therefore, if you have any doubt you visit the govt website https://pmkisan.gov.in/ for all details about the Kisan credit card scheme.

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