What Is Kisan Credit Card Scheme

 

What Is Kisan Credit Card Scheme

Kisan Credit Card scheme is a government-backed initiative in India that provides credit to farmers to help them purchase necessary inputs for their agricultural activities. The scheme is aimed at providing easy and timely access to credit to farmers, with the goal of increasing agricultural productivity and income. Eligible farmers can apply for a KCC through participating financial institutions, and once approved, can use the card to make purchases at authorized outlets. The credit limit and interest rate for the card is determined based on the farmer’s income and creditworthiness.

Benefits Of Kisan Credit Card Scheme

Kisan Credit Card (KCC) is a credit card for farmers in India, provided by banks to help them with their financial needs. Some benefits of kisan credit card scheme include:

1. Easy access to credit: KCC allows farmers to quickly and easily access credit from banks to purchase seeds, fertilizers, and other inputs for their farms.
2. Low interest rates: KCC typically offers lower interest rates than other types of credit cards, making it more affordable for farmers.
3. No collateral required: KCC does not require farmers to provide collateral, making it accessible to those who may not have assets to pledge.
4. Convenience: KCC allows farmers to make purchases at any time and pay for them later, providing them with greater flexibility and convenience.
5. Overdraft facility: KCC holders have the option of availing an overdraft facility upto certain limit as per their credit limit.
6. Crop Insurance: KCC holders can avail crop insurance schemes at low premium cost which will provide them protection against crop failure due to natural calamities.

Who Can Apply For Kisan Credit Card (KCC)

To be eligible for a Kisan Credit Card (KCC), an individual must meet the following criteria:

1. Must be a farmer: The applicant must be engaged in agricultural activities as the primary source of income.
2. Age limit: The applicant should be above 18 years of age.
3. Residency: The applicant should be a resident of the area where they are applying for the KCC.
4. Land holding: The applicant should own or operate agricultural land. The land holding limit may vary based on the bank and state.
5. Documents: The applicant will need to provide proof of identity, residence, and income, as well as other relevant documents such as land records, tax receipts, and certificates from local authorities.
6. Creditworthiness: The applicant should have a good credit history and should not have any outstanding loan defaults.

It’s important to note that the eligibility criteria may vary from bank to bank, so it’s best to check with the specific bank you are applying to for their specific requirements.

What Documents Required For Kisan Credit Card (KCC)

The documents required for a Kisan Credit Card (KCC) application may vary depending on the bank and the state in which you are applying. However, some common documents that may be required include:

1. Proof of identity: This could include a government-issued photo ID such as a voter ID, PAN card, or passport.
2. Proof of residence: This could include a utility bill, lease agreement or ration card.
3. Proof of income: This may include income tax returns, land records, and certificates from local authorities, or any other income proof.
4. Land ownership documents: This may include land records, such as a patta or FMB, or any other documents that prove ownership of the land.
5. Crop Insurance: Some banks also require proof of crop insurance for the KCC application
6. Photographs: Two recent passport size photographs of the applicant.
7. Credit score: Banks also check credit score of the applicant
8. Other documents if required by bank

It’s important to check with the specific bank you are applying to for their specific requirements and to ensure that you have all the necessary documents before applying.

How to apply for a Kisan Credit Card Scheme

There are several ways to apply for a Kisan Credit Card (KCC), including:

1. Applying online: Many banks now offer the option to apply for a KCC online through their websites. You will need to provide all the required documents and fill out the application form on the bank’s website.
2. Applying through a bank branch: You can also visit a nearby bank branch to apply for a KCC. You will need to fill out an application form and provide all the required documents to the bank representative.
3. Applying through Common Service Centres (CSCs): Many states have set up Common Service Centres (CSCs) where farmers can apply for a KCC by submitting the required documents and application form in person.
4. Applying through a Bank Mitra or Business Correspondent: Some banks also have authorized agents like Bank Mitra or Business Correspondent who can assist in KCC application process.

Regardless of the method you choose, you will need to provide all the required documents and fill out the application form. It’s also important to check with the specific bank you are applying to for their specific requirements and procedures.