Kisan Credit Card Scheme

The Kisan Credit Card program, run by the Indian government, gives farmers easy access to credit when they need it. Founded in 1998, the Kisan Lending Card (KCC) is a short-term formal credit program for farmers designed by NABARD (National Bank for Agriculture and Rural Development).

Agriculture, fishery, and animal husbandry producers had their credit needs covered thanks to the KCC program, which was put in place to make this possible. This was accomplished by assisting them in obtaining short-term loans and establishing a credit line to use in the acquisition of equipment and other purposes.

In addition, farmers are spared from the exorbitant interest rates of ordinary bank loans since the interest rate for KCC is as low as 2% and averages at 4%. According to this innovative plan, farmers may pay back their debts based on when their produce is harvested.

Feature & Benefits of the Kisan Visa Credit Card

  • Post-harvest costs are credited to farmers for satisfying their financial needs for agriculture and other connected operations.
  • Agricultural equipment, including milking cows and water pumps.
  • Farmers may get up to Rs. 3 lakh in loans, as well as loans for selling their crops.
  • Holders of KCC schemes are covered up to Rs.50,000 in the event of death or permanent disability. In the event of additional dangers, a sum of Rs.25,000 is provided as insurance.
  • In addition to the Kisan Credit Card, eligible farmers will get a savings account with a competitive interest rate, a smart card, and a debit card.
  • A simple payout process and a variety of payback choices.
  • An all-encompassing credit facility/term loan for all agricultural and related needs.
  • Purchase assistance, monetary discounts from merchants/dealers, etc., for fertilizers, seeds, etc.
  • Once the harvest season is complete, repayments may be made for up to three years.
  • For loans of up to Rs.1.60 lakh, no collateral would be needed.

Kisan Credit Card Interest and Other Fees

The KCC’s interest rate and credit limit vary from bank to bank. KCC’s interest rates, on the other hand, may be as low as 2%, with an average of 4%.

In addition, the government provides farmers with a variety of subsidies and programs to lower their interest rates. Depending on the cardholder’s payment history and overall credit history, they may be eligible for additional benefits.

The issuing bank determines all other fees and costs, such as processing fees, insurance premiums, land mortgage deed expenses, and so on.

Kisan Credit Card Loan Scheme Eligibility Requirements

The following are the requirements for participating in the KCC program:

  • An owner-cultivator is a farmer who is in business for himself or herself.
  • People who are part of a group and share a debt. The members of the group must be farmers.
  • In order to be eligible for the KCC, a farmer must be either a tenant farmer or an oral lessee.
  • Farm sharecroppers’ self-help groups (SHGs) or joint liability groups (JLG).
  • Producers of crops or animal husbandry, as well as non-farmers engaged in industries such as fishing.

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