Kisan Credit Card- KCC was launched in 1988 by the Government of India to empower Indian farmers. It was based on the model scheme prepared by the NABARD.

Note: NABARD stands for National Bank for Agricultural and Rural Development. It is the primary regulatory body. This body administers the rural banking system in India.

In unorganized sectors the farmers were charged with high interest rates. With KCC, farmers can avail loans at the time of crop production.The scheme covers expenses that are related to additional activities.

The following points describe the uses of credit scheme:

• Loan to market the farm produce
• Investment credit required for agriculture and similar services like dairy animals, pump sets, etc.
• Fulfill the crop cultivation requirement with short- term credits.
• Post harvest charges.
• Working capital to maintain the farm activities and assets related to agriculture.
• Fulfill expenses requirements of farmers’ families.

What is the aim of KCC?

The aim of KCC is to meet the credit requirements of farmers in animal husbandry, agriculture, fisheries, etc. This is accomplished through availing short-term loans. The credit limit enables the farmers to buy farm equipment and use for other expenses.

What are the characteristics and benefits of KCC?

Characteristics:

• The farmers will get an ATM cum- Debit card. This will enable them to withdraw cash from KCC accounts at ATMs. They can make payments via PoS terminals.
• The KCC will be in the way of a rotating account. If the account has any credit balance, it will carry interest at the rate of the savings bank.

Benefits:

• Investment of credit for agricultural requirements.
• Loan of up to Rs. 3 lakh.
• Loan available for market produces.
• Insurance coverage of up to Rs. 50,000. It is in case of permanent ailment or death.
• Insurance coverage of Rs. 25,000. It is in case of other risks.
• A savings account with an appealing interest rate.
• A debit card and smart card along with a Kisan Credit card.
• Credit period of up to 3 years and loan repayment is made once the harvest is done.
• Smooth payment process and flexible options for loan repayments.
• No assurance required for loan amount of up to Rs. 1.60 lakh.
• Single facility for credit or loan term. It is for all agriculture requirements.
• Purchase seeds, fertilizers, etc from merchants and avail cash discounts.

What is the eligible criteria for the Kisan Credit Card Scheme?

The eligible criteria for KCC scheme are as follows:

1. Farmer who is a borrower or belongs to a group of owner-cultivators.
2. Any single farmer who is an owner-cultivator.
3. Tenant farmers, sharecroppers, or an oral lessee.
4. Farmers that are involved in crop production or similar activities.
5. Self-help group (SHG) or Joint liability group (JLG) of farmers, tenant farmers, sharecroppers, etc.

The eligible criteria under KCC scheme for fisheries and Animal husbandry are:

1. Marine fisheries

Own any type of fishing vessel or a registered boat. The farmer should have a necessary permission or license for fishing in the sea.

2. Aquaculture and inland fisheries

Fishers, fish farmers, women groups, SHGs, and JLGs are eligible for the scheme. Any farmer who leases or owns any activity related to fisheries are also eligible.

3. Dairy

JLGs, SHGs, farmers, tenant farmers and dairy farmers who rent, lease or own sheds.

4. Poultry

Joint borrowers, single farmers, tenant farmers, JLGs and SHGs of the following

• Birds
• Goats
• Pigs
• Sheep
• Rabbits, and
• Poultry.

The farmers should have sheds that are of their own, on lease or rent.

What are the features of crop insurance- Pradhan Mantri Fasal Bima Yojana ( PMFBY)?

1. Complete insurance coverage

The PMFB scheme provides complete insurance coverage against the failure of crop production. It aids to stabilize the farmers income and give support to use innovative practices.

2. Low premium rate

The scheme is available for farmers at a very low premium rate. These rates are-

• Maximum sum of 1.5% insured for Rabi.
• Up to 2% sum insured for Kharif, pulses, oilseeds & food crops.
• Up to 5 % sum insured for yearly commercial or horticulture crops.

3. Coverage for yield losses from numerous natural calamities

The scheme covers the losses of yield due to the following-

• Cyclones, storms, hailstorms
• Lightening and natural fire
• Drought
• Flood, landslides, etc.

4. Difference in premium

There will be a difference in the rate of insurance and premium charged on farmers payment. It shall be equally shared between state and center.

5. 3 levels of repayment

There are 3 levels of repayment related to crop risk in the agriculture field. They are:

• 70%
• 80%, &
• 90%.

It will be available for all the crops.

6. Compulsory scheme for loanee farmers

The PMFBY is a mandatory scheme for loanee farmers who take loans for requested crops. Yet, this scheme is optional for non-loanee farmers who have insured crop(s) with insurable interest.

What are the documents to be considered before applying for the KCC scheme?

• Application for duly filled and signed by the applicant.
• Xerox of address proof
• Xerox of identity proof
• Documents of land
• Passport size photo, and
• Other documents like post dated cheques (PDC). These PDCs are requested by the banks.

What are the services you can get from banks?

Crop loans- short term loans

The bank will provide upto 2 years of maximum repayment period. It will include one year as the moratorium period. In addition it will be allowed if the loss of crop is between 33% and 50%. If crop loss is more than 50%, the repayment restructured period may get extended. It will be for a maximum of 5 years that will include one year as moratorium period.

Agriculture loan- long term loans

There will be modification in the existing term for loan repayments. It will be modified as per the repaying capability and extent & nature of natural calamity.

Note: If the crop loss occurs due to natural calamity, the farmer will have to inform the bank branch & take help from the bank.

What process should you follow for the KCC application?

You can apply for the KCC through online as well as offline mode.

In online mode:

1. Visit the bank website.
2. Apply for the Kisan Credit Card.
3. Fill the application form and tap on the submit button.
4. A reference number is sent to the applicant.
5. If the applicant is eligible, the bank will contact him/her within 3-4 working days.

In offline mode:

1. Visit any bank branch that provides KCC facility.
2. Fill the application form with the help of a bank representative (if required).
3. Submit the form with all the documents.
4. If the applicant is eligible, the bank’s loan officer will provide the loan amount.

Conclusion

Kisan Credit Card is a specially designed card for farmers. Through KCC, farmers can take short term loans of upto 3 lakh. It will be authentic for the period of 5 years. There are various banks which provide KCC at different interest rates.

KCC aims to provide timely and adequate credit to farmers for meeting their cultivation needs.