Kisan credit card: Kisan Credit Card (KCC) scheme gives loans to crores of farmers in countries at a very cheaper rate. Its purpose is to give loans to farmers on time and easy terms for farming and its related activities. Under this scheme, farmers can take loans for short -term farming, post -harvesting expenses, domestic needs, animal husbandry and repair of farms.
The government offers 2% interest subsidy and 3% time payment bonus in this scheme, which can give the farmer a loan at only 4% annual interest rate. It is one of the cheapest agricultural loans available in the country. Let us know what is the KCC card, how does it work and how can farmers take advantage of it?
What is the Kisan Credit Card Scheme?
The Kisan Credit Card (KCC) scheme was launched in 1998 with the intention of giving loans to farmers on time for farming and other needs. Through this, farmers can buy seeds, fertilizers and farming tools so that they do not get to take loans at expensive interest. This card also acts like a debit card, so that farmers can withdraw money from ATMs.
According to government data, India currently has more than 7.75 crore active KCC accounts. In the last few years, the number of loans under this scheme has increased rapidly. In the year 2014, where the total loan was ₹ 4.26 lakh crore, it has increased to ₹ 10.05 lakh crore by December 2024. It is clear that both the need and trust of KCC among the farmers have increased.
How much loan is available under KCC?
The loan limit received by the farmer under KCC depends on many things. Such as the scale of finance of the crop, the amount of land, the cost of farming, insurance expenses, and the maintenance of form machines. On the basis of the loan limit that is set in the beginning, a new limit is set as a natural increase of up to 10% every year for the next five years.
Finance Minister Nirmala Sitharaman has increased the limit of maximum loan from ₹ 3 lakh to ₹ 5 lakh in Budget 2025. A loan of up to ₹ 2 lakh is completely collator-free, that is, there is no need to mortgage anything for this. At the same time, on an amount above ₹ 2 lakh, banks can ask for bail or other security according to their policy.
Why the card limit in two parts?
This is because of the short-term loan (for crop) and term loans (such as tractor, irrigation) interest rates, repayment terms and subsidies vary. Hence the bank divides the KCC limit into two parts, one short term loan, the other term loan. This not only provides facilities to the farmer, but it is also easy for the bank to account.
How does KCC card work?
This card gives a kind of multipurpose digital debit card to farmers from the bank. With this, farmers can withdraw money or shop from ATM, Bank Mitra, Mobile App or POS machine of seeds/seeds/sellers. The card may also be associated with Aadhaar or biometric identity, so that its use is safe and easy.
Where can the card have transactions?
With this card, farmers can do ATM, Bank Mitra (BC), mobile banking and Aadhaar based transactions. With this, farmers do not have to waste time in the queue of the bank and they can buy goods directly from their farm.
Who can apply for KCC?
- Land owner farmer (in individual or joint names)
- Fatalist, tenant farmer and oral lease holder
- Farmer Group such as SHG (Self Help Group) or JLG (Joint Liability Group)
Online process of application for KCC
- Go to the website of the bank from which KCC is to be taken.
- Choose the Kisan Credit Card option.
- Click ‘Apply’.
- Fill the necessary information and submit.
- The application number will be available, and the bank will contact in 3-4 days.
At the same time, for offline application, the farmer has to go to his nearest bank branch and fill the form. After this, bank officials will conduct an necessary check and approve the KCC card on the basis of your qualification.
What documents are required?
- Filled application form
- Identity and residence proof (eg Aadhaar, Driving License)
- Passport Size Photo
- Land ownership
- Details of crop pattern
- If the loan is more than ₹ 1.60 lakh, then documents related to mortgage or guarantee
The Kisan Credit Card Scheme is a powerful means of giving financial support to farmers for every aspect of farming. It has low interest, the process is simple and is connected to the bank in digital form. For small and marginal farmers, this scheme not only makes farming easier, but also helps them towards becoming self -sufficient.
Also read: Plot Loan: Not home, just to buy land? Know how and on which conditions the loan will be available