The Kisan credit card scheme was launched in 1998 by the National Bank for agriculture and rural development (NABARD) to issue credit cards to small and marginalized farmers. We have all frequently read newspaper headlines on how small farmers commit suicide after being in a debt trap on being exploited by the landlords and moneylenders. Lack of money hampers the farming process and thus forces farmers to borrow loans at high-interest rates. Kisan credit card was a method to reduce the dependence of marginalized farmers on landlords for the loan. This blog talks about Benefits, Interest Rate & Eligibility to apply for a Kisan credit card, and how a farmer can apply for a KCC.
Objectives of Kisan credit card scheme
• To provide short term credit to farmers at a reasonable interest rate to save small farmers from the exploitation of the landlords and money lenders.
• Provide funds for post-harvest expenses.
• To meet consumption requirements of farmer household.
• Produce marketing loan
• Working capital for maintenance of farm assets and activities allied to agriculture
Benefits of Kisan credit card
• KCC aims to provide a timely and adequate loan with justifiable interest rates to small and marginalized farmers for their farming needs.
• It helps them meet their short term credit requirements such as buying seeds and fertilizers and post-harvest expenses.
• It also helps farmers with investment credit requirements for agriculture.
• Collateral security may be obtained at the discretion of the Bank for loan limits above ₹ 1.00 lakh in case of non-tie-up and above ₹ 3.00 lakh in case of tie-up advances.
• Loan at a low-interest rate, Flexible repayment options and hassle-free disbursement procedure.
Eligibility criteria for Kisan credit card
• Individual or joint borrowers who are own cultivators.
• Tenant farmers, oral lessees & sharecroppers
• Self-help group and joint liability group including tenant farmers, sharecroppers
The interest rate on Kisan credit card:
The interest rate on a loan differs from Bank to Bank. Also, the farmer applying for a credit card needs to have a good credit history. It helps in availing loans at low-interest rates. Before applying for a loan at a bank, you need to compare various options regarding interest rates, fees and other charges.
Documents you need to apply for Kisan credit card:
• Passport size photo of the applicant.
• Identity proof that is applicant’s voter ID card, pan card, driving license or Adhaar card etc. • Address proof
• Duly filled in and signed in the application form.
How to apply for a Kisan credit card?
Apply online:
• Visit the Bank’s website and from the list of options, choose the agriculture sector • You can click on the Kisan credit card option and click “Apply”.
• The website will redirect you to the application page. There you can fill out the required details and
• Click “submit”.
• You will receive a reference number. The Bank will contact you in a few working days if you are eligible to guide you about the further process.
Apply offline:
To apply offline, you can visit the nearest branch and contact the bank representatives to help you with the process. Banks provide offline application facilities to even remote parts since most farmers are unfamiliar with the application process.
Conclusion:
This blog helped you know how to apply for a Kisan credit card online and how to know your eligibility and benefits of applying to a Kisan credit card. Read this blog to know whether you are eligible for KCC or not and how can you become eligible. One thing to keep in mind before applying is that you need to compare various banks to conclude from where you should apply for a credit card.
Read Also: What is CIBIL score?
