Kisan Credit Card Scheme: Benefits, Features & Application Process

The Kisan Credit Card scheme is a scheme run by the Government of India that provides farmers with timely access to credit. NABARD created the Kisan Credit Card (KCC) scheme in 1998 to provide farmers with short-term formal credit (National Bank for Agriculture and Rural Development).

Here is Everything You Need to Know About Kisan Credit Card Scheme

The KCC scheme was implemented to ensure that farmers' credit needs in agriculture, fisheries, and animal husbandry were met. This was accomplished by assisting them in obtaining short-term loans and providing them with a credit limit to purchase equipment as well as for other expenses.

Furthermore, with the help of KCC, farmers are exempt from the high-interest rates of regular bank loans, as the interest rate for KCC starts as low as 2% and averages at 4%. Farmers can use this scheme to repay their loans based on the harvesting period of the crop for which the loan was granted.

Features and benefits of KCC

Farmers are given credit for meeting their financial needs for agricultural and related activities, as well as post-harvest expenses.
Investment credit for agricultural needs such as dairy animals, pump sets, and so on.
Farmers can obtain a loan of up to Rs.3 lakh as well as produce marketing loans.
In the event of permanent disability or death, KCC scheme holders are covered up to Rs.50,000 in insurance. In the event of other risks, a cover of Rs.25, 000 is provided.
In addition to the Kisan Credit Card, eligible farmers will receive a savings account with an attractive interest rate, a smart card, and a debit card.
Flexible repayment options and a straightforward disbursement procedure
A single credit facility/term loan is available for all agricultural and ancillary needs.
Assistance with the purchase of fertilizers, seeds, and other agricultural supplies, as well as obtaining cash discounts from merchants/dealers.
Credit is available for up to three years, with repayment possible after the harvest season.
There is no need for security for loans up to Rs. 1.60 lakh.

Application Process of KCC Scheme

The Kisan credit card application process is available both online and offline.

Online

To apply for the Kisan credit card scheme, go to the website of the bank.
Select the Kisan Credit Card from the list of options.
When you select 'Apply,' the website will take you to the application page.
Fill out the form with the necessary information and click 'Submit.'
As a result, a reference number for your application will be issued.
If you are eligible, the bank will contact you within 3-4 working days to discuss the next steps.

Offline

Offline applications can be made by visiting the bank branch of your choice or by downloading the application form from the bank's website. The applicant can go to the branch and start the application process with the assistance of a bank representative. Once the formalities are completed, the bank's loan officer can assist the farmer with the loan amount.