Kisan Credit Card and KCC Loan – Features, How to apply

Agriculture is backbone of our economy. India depends upon farmers for it’s growth. Agriculture sector even if it is majorly unrecognized is one of the most important sectors for our economy. Till now if in need of money our farmers have to depend on informal borrowing which had a very high interest rate and resulted in debt trap for farmers. To address this issue government had launched Kisan Credit Card scheme also called as KCC Loan Scheme.

What is Kisan Credit Card ?

Pradhan Mantri Kisan Credit Card Yojana was initially launched in 1998 . This called as KCC Loan scheme and it allows farmers to get a formal credit using Kisan Credit Card to buy things like seeds, fertilizers, pesticides, farm equipment etc.

Benefits of Kisan Credit Card?

• Flexibility in loan repayment: This is one of the most important feature. Loan repayment is based on harvest season of the crop for which loan was taken
• No collateral on loans up to 1.6 Lakhs
• Expandable credit limit based on income
• Low interest rates: That is whole purpose of this scheme. To provide farmers credit on a low interest rate.
• A loan meant for all agricultural needs
• Crop insurance as part of scheme
  • Up to Rs. 50,000 against Permanent Disability and Death
  • Up to Rs. 25,000 is provided against other risks
• High interest rates on the savings in Kisan Credit Card account

Apply for Kisan Credit Card ( KCC Loan account)

The scheme was on recommendation of National Bank for Agriculture and Rural Development and hence almost all banks have this scheme. Hence you can get a Kisan Credit Card either by applying online or by visiting a branch.

Apply Online

• Go to banks website. You need to choose which bank you wish to apply in.
• Go to Kisan Credit Card section and download the application form
• Go to banks nearest branch and submit the application form along with all the needed documents
• A loan officer will be assigned to your application
• Once loan is sanctioned you will receive your Kisan Credit Card

Visit The nearest branch of the bank of your choice

you can visit any of the branch office and fill up the form in person. Visit the branch along with all the necessary documents.

Some banks participating in this scheme

Sate Bank Of India – Click here for form

HDFC Bank – Click Here for form

AXIS Bank – Click here for form

ICICI bank – click here for form

PNB – click here

Eligibility for Kisan Credit Card

Documents Required for Kisan Credit Card

Those who want to apply for a Kisan Credit Card will have to submit their certificate, ie identity proof and documents related to the address proof where you live. You can submit the written documents below for this.

Identity Proof

Aadhar Card, Driving License, Passport, Voter ID Card, Overseas Citizen of Indian Card, Person of Indian Origin Card, Job Card issued by NREGA, Letter issued by UIDAI

Address Proof

Aadhaar card, driving license, passport, electricity bill not more than 3 months old, ration card, property registration document, person of Indian origin card, job card issued by NREGA, bank account details

Apart from this, your passport size photographs will also be needed.

What is the interest rate on Kisan Credit Card?

Now this is an important point to consider. You need to check the interest of KCC Loan. The interest rates for different banks are different and you need to check with the bank on what is ongoing interest rate. For example SBI information is at below link and you can also check SBI’s any of the branch to get this information.

• Interest subvention @2% p.a is available for loan amount upto Rs. 3 Lacs
• Additional interest subvention @3% p.a for prompt repayments
• Simple interest @7% p.a will be charged for one year or upto the repayment due date, which ever is earlier.
• In case of non-repayment within the due dates interest is applied at card rate

You can find above details on https://sbi.co.in/web/agri-rural/agriculture-banking/crop-loan/kisan-credit-card

So the important point to note is that the interest date is from 7% approx and goes up to 11 to 12 %. And the rates are different for short term and log term KCC Loans.

Now if you pay in time, banks may offer a discount on rates which can go up to 4% so your net interest rates come down substantially. And this is an important point.

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So in case you were not aware of Kisan Credit Card and KCC Loan scheme, I hope that I have provided you with sufficient information to take benefits of this scheme. Do visit your nearest branch of the bank or online to the banks website to get more information on this. All the best!