Kisan credit card: eligibility, interest rate, loan amount, how to apply and other details
New Delhi: The Kisan Credit Card Program (KCC) was started in 1998 with the aim of providing formal short-term credit to farmers. Prime Minister Narendra Modi recently launched a saturation campaign for the distribution of Kisan Credit Cards (KCC) to all beneficiaries of the PM-KISAN program in Chitrakoot, Uttar Pradesh.
As part of this initiative, more than 25 lakh beneficiaries of PM Kisan across the country received KCC and more than 2,000 bank branches in rural areas were tasked with providing KCC to farmers. Note that owner cultivators, as well as sharecroppers, can avail loans on these KCCs to meet their agricultural needs at attractive interest rates. The State Bank of India (SBI), the country’s largest lender, offers farmers a Kisan Credit Card (KCC).
Who is eligible for the Kisan credit card?
All farmers – individuals / farmer co-owners
Farmers, oral tenants and sharecroppers, etc.
SHG or joint responsibility groups, including sharecroppers.
Documents required to apply for a Kisan credit card:
Completed application form
Proof of identity – voter ID card / PAN card / passport / Aadhaar card / driving license etc.
Proof of address: voter ID card / passport / Aadhaar card / driver’s license etc.
How do I apply for a Kisan credit card?
Step 1: Visit the bank’s official website.
Step 2: Choose âKisan Credit Cardâ from the list of available credit cards and click the âApplyâ button.
Step 3: You will be redirected to the online application page. Fill in the required fields with specific details before clicking “Submit”.
Step 4: Once the request is submitted, the system will generate a request reference number. Note the same and use it for all future queries.
How to apply for an SBI Kisan credit card?
Step 1: Visit the official website of SBI Bank sbi.co.in
Step 2: Click on the ‘Agricultural & Rural’ tab
Step 3: Under âAgricultural Bankâ, click on âKisan Credit Cardâ.
Step 4: Click on Request Form and you will be directed to the form.
Step 5: Fill in the required information and âSubmitâ the form.
Features and Benefits of the Kisan Credit Card:
1. Farmers earn interest at the savings bank rate on the KCC credit balance.
2. Borrowers will receive a State Bank Kisan Card (ATM) debit card to enable them to withdraw KCC accounts from ATMs and Point of Sale (PoS) terminals.
3. A 2% per annum interest subsidy is available for a loan amount of up to Rs 3 lakh.
4. Additional interest subsidy at 3% per annum for quick repayments.
5. The notified crops / areas are covered by crop insurance for all KCC loans.
6. The loan amount for the first year will be assessed on the basis of the cost of cultivation, post-harvest expenses and the cost of maintaining the farm.
7. For subsequent loans of 5 years will be sanctioned on the basis of the increase in the financing scale
8. The collateral guarantee is canceled for the limit of KCC up to Rs 1.60 lac. The sanctioned KCC limit will be taken into account for the purpose of setting the warranty guarantee requirement
9. Simple interest of 7% per annum will be charged for one year or until the repayment due date, whichever occurs first.
10. In the event of non-reimbursement on time, interest is applied at the rate of the card. Beyond maturity, interest will be compounded semi-annually.
11. The repayment period can be fixed according to the harvest and marketing period planned for the crops for which a loan has been granted.
12. The KCC offers short-term loans to farmers at an interest rate of 4 percent subject to payment on time.
Who is eligible for this loan?
According to the official SBI website-www.sbi.co.in, all farmers (individuals or co-borrowers) who are owner-cultivators, sharecroppers, oral tenants, sharecroppers etc., single farm group (SGH) or group of farmers , including sharecroppers, are eligible for the loan.
KCC loan interest rate:
For the KCC loan, simple interest is payable at 7 percent per annum for one year or until the repayment due date, whichever occurs first. In the event of non-reimbursement on time, interest is applied at the rate of the card. However, in the event of non-payment beyond the due date, interest will be compounded semi-annually. However, the repayment period can be fixed according to the harvest and marketing period planned for the crops for which a loan has been granted.
How to apply for a KCC loan?
Applicants can contact their nearest branches engaged in agricultural development or even speak to visiting marketers in the village. All they need to do is complete an application form accompanied by proof of identity and address.