KISAN CREDIT CARD (KCC)
Kisan Credit Card (KCC) is an initiative by the Government of India to ensure that loans to the farmers of the country are available at affordable rates. KCC Scheme can also be referred to as Kisan Credit Card Loan because it provides term loan to cover the cost of farming, crop and farm maintenance costs. Let’s learn more about how Kisan Credit Card Loan works and its benefits.
Objective Of KCC
The purpose of the KISAN CREDIT CARD scheme is to provide adequate credibility to the farmers under the single window for their cultivation, which is given below.
- Completion of short-term loan requirements for cultivation of crops
- Post harvest costs
- Production of Marketing Loans
- Requirements for Consumption of Farmer’s Families
- Working capital for the maintenance of agricultural assets, working capital required for agricultural activities, such as dairy animals, inland fishery and flower farming, horticulture etc.
- Investment requirement for agriculture and allied activities such as pump sets, sprayers, dairy animals, floriculture, horticulture etc.
- Short-term credit requirements for animal, bird, fish, shrimp, other aquatic organisms, catching fish.
Features and benefits Of KCC
- Get interest to save bank rate on credit balance in KCC account
- Free ATM Co-Debit Card for all KCC borrowers (Bank Kisan Card)
- Interest accrual @ 2% p.a.is is available for loan amount up to Rs. 3 lakhs
- Additional interest subvention @ 3% p.a. for prompt repayment
- Notified crops / notified areas fall under crop insurance for all KCC loans
- Simplifies disbursement procedures
- Removes stiffness in relation to cash and kind
- No need to apply for every crop loan
- Assuring availability of credit at any time while enabling low interest burden for the farmer.
- Helps in buying seeds, fertilizers, on the convenience and likeness of the farmer
- Helps to buy discounts on cash-benefits from dealers
- Credit Facility for 3 Years – There is no need for seasonal evaluation
- The maximum loan limit on the basis of agricultural income
- Safety, margin and documentation criteria for agricultural advance
- Providing adequate and timely loans to the farmers
- Career needs of the borrower’s entire year were taken care of Minimum paper work and simplification of documentation to withdraw money from the bank.
- Assuring availability of credit at any time while enabling low interest burden for the farmer. Flexibility of draws from other branches other than the issuing branch at the discretion of the bank.
Eligibility Of KCC
- All the farmer-person / joint borrowers who are the master cultivators.
- Tenant farmer, oral less and share crops etc.
- Farmers’ SHGs or joint liability groups which include tenant farmers, stock croppers etc.
- Animal Husbandry and Fisheries are also eligible for this scheme.
Rate of Interest
Kisan credit card loan interest rate is at the discretion of the bank / financial institution. Although it is monitored by the RBI and it usually corresponds to the base rate.
In addition to interest on the loan, some other additional fees are included in the plan. These include processing fees, insurance premiums etc. However, in many cases the lending institutions forgive these charges for the benefit of the farmers.
- Ordinary interest @ 7% p.awill will be charged for one year or till due date, whichever is earlier.
- In the event of non-repayment within the due dates, the interest on the card rate is levied.
- Interest will be compounded after half year from the due date.
Repayment Of KCC
For the crops that have been given the loan, repayment period can be fixed as per anticipated harvesting and marketing period.
- For short-term loans, they usually keep anticipated harvesting and marketing period in mind.
- Long term loans are generally eligible to repay within five years of disbursement.
How to Apply for KISAN CREDIT CARD
Contact the nearest SBI branch for the application and more information.
Kisan credit cards are offered by many public sector banks, co-operative banks and rural banks in India. some of them are:
- Indian Industrial Development Bank (IDBI)
- National Payment Corporation of India (NPCI)
- State Bank of India (SBI)
Source : Reserve Bank of India