Kisan Credit Card Door-to-Door Campaign to Start From Oct 1: Eligibility, Documentation, Application & End date

Farmers in India often face the daunting challenge of securing affordable loans for various agricultural needs, leading many to turn to local moneylenders who offer loans at exorbitant interest rates. To address this issue and provide much-needed financial relief to farmers, the Indian government has implemented the Kisan Credit Card (KCC) Scheme.

The KCC Scheme - Empowering Farmers:

The Kisan Credit Card Scheme is designed to offer farmers cost-effective loans that can be used for purchasing essential agricultural inputs such as seeds, fertilizers, pesticides, tractors, and other farming machinery. Under this initiative, farmers receive a special credit card from the government, which they can use to fulfill their agricultural requirements.

However, there are still many farmers who do not possess Kisan Credit Cards, preventing them from accessing these affordable loans. Recognizing this gap, the government has taken a proactive step to issue credit cards to more farmers, with a target of providing 1.5 crore credit cards this year.

KCC Door-to-Door Campaign:

Union Finance Minister Nirmala Sitharaman and Union Agriculture Minister Narendra Singh Tomar have jointly launched the KCC door-to-door campaign. The campaign's primary objective is to ensure that every farmer in the country has access to the benefits of the KCC Scheme. It will run from October 1 to December 31, 2023, with the aim of simplifying the process of obtaining Kisan Credit Cards for eligible farmers.

Also Read: PMFBY Crop Insurance Scheme Witness Record 25 Million Farmer Enrollment in 6 Years

Eligibility and Identification:

To identify eligible beneficiaries, the Ministry of Agriculture and Farmers Welfare has cross-verified existing KCC account holders with the PM Kisan database. Farmers who meet the criteria for the PM Kisan Yojana and have not yet received a Kisan Credit Card will be provided with this facility. It is estimated that approximately 1.5 crore such farmers will benefit from this campaign.

Benefits of KCC:

Kisan Credit Card holders can avail themselves of both short-term and term loans for their crop-related expenses. The scheme also offers an insurance cover of up to Rs 50,000 against death and permanent disability under Personal Accident Insurance, with additional coverage of up to Rs 25,000 for other risks. Farmers can use KCC loans for various purposes, including purchasing cattle, pump sets, land development, plantation, and drip irrigation equipment.

Validity and Loan Amount:

The Kisan Credit Card is valid for five years, with an option to extend it for an additional three years. Farmers can avail of loans of up to Rs 3 lakh through the KCC scheme. Initially, a loan of Rs 50,000 is provided, which can be increased upon timely repayment. The interest rate for KCC loans typically stands at 9 percent, but cooperative societies receive a 2 percent rebate, making the loan accessible to farmers at a reduced rate of 7 percent. Furthermore, farmers who repay loans promptly receive a government subsidy of 3 percent, bringing the effective interest rate down to just 4 percent.

Also Read: Indian Government Launches Agri-Credit and Crop Insurance Initiatives to Help Farmers

Documentation and Application:

To obtain a Kisan Credit Card, farmers need to provide documents such as Aadhaar cards, voter ID cards, driving licenses, passports, land ownership papers, and affidavits confirming they are not borrowers in any other bank. The application process can be completed at cooperative banks, where farmers hold accounts, or through the official website of the bank or Common Service Centre.

The Kisan Credit Card Scheme exemplifies the government's commitment to uplifting the farming community and providing them with the financial support they need to thrive. It not only eases the financial burden on farmers but also promotes sustainable agricultural practices and economic prosperity in rural India. As the KCC door-to-door campaign kicks off, millions of farmers across the nation are poised to benefit from this vital initiative.

Also Read: Union Minister Kailash Choudhary Launches AI Chatbot to Empower Farmers under PM-KISAN Scheme