Kisan Credit Card Yojana: Apply Now

Kisan Credit Card (KCC) scheme was launched in 1998 by the Government of India to provide affordable credit to farmers for their agricultural needs. The scheme is implemented by the Ministry of Agriculture and Farmers Welfare through banks. It provides farmers with timely access to credit for crop production, post-harvest expenses, farm maintenance, dairy and fisheries activities, and other agricultural purposes. The scheme has played a crucial role in reducing farmers dependence on informal money lenders and improving access to institutional credit.

Features and Benefits

The scheme provides a credit card with a pre-approved limit based on land holding, crop pattern and credit history. Farmers can withdraw cash as needed and pay interest only on the amount used, making it a flexible and cost-effective solution. The card is valid for 5 years with annual renewal, providing continuous access to credit without repeated paperwork. Interest rates are affordable at 7% per annum with an additional 3% subvention for farmers who repay on time, bringing the effective interest rate down to just 4%. This makes it one of the cheapest sources of agricultural credit in India.

Coverage and Limits

The scheme covers all types of farmers including small, marginal, tenant and sharecroppers. Individual farmers, joint farmers and farmer groups are all eligible. Loans up to Rs 3 lakh are provided with no collateral requirement for loans up to Rs 1.60 lakh. The credit limit is assessed based on the farmers land holding, cropping pattern and scale of farming activities. Personal accident insurance cover of Rs 1 lakh is also provided to cardholders at nominal premium.

Eligibility Criteria

All farmers including small and marginal farmers, tenant farmers and sharecroppers with valid land records are eligible for the scheme. Individual farmers, joint farmers and farmer producer organizations can apply. Farmers engaged in crop production, dairy farming, fisheries, poultry and other allied activities are covered. There is no upper limit on land holding size for eligibility.

Application Process

Farmers can apply at any bank branch with their land records and identity proof. The bank assesses the credit limit based on land holding and crop pattern. The assessment takes into account the cost of cultivation, maintenance expenses and family needs. Once approved, the Kisan Credit Card is issued within 15 to 30 days. Farmers can also apply through Common Service Centres and online banking portals.

Required Documents

• Aadhaar Card for identity verification
• Land records or cultivation proof
• Bank account details for loan disbursement
• Passport size photograph
• Crop plan for the upcoming season
• Previous loan repayment history if applicable

Frequently Asked Questions

Can tenant farmers apply for KCC?

Yes, tenant farmers and sharecroppers with valid land records or cultivation certificates are eligible.

What is the interest rate on KCC?

The interest rate is 7% per annum. Farmers who repay on time get an additional 3% subvention, making the effective rate 4%.