Kisan credit card(KCC) scheme was introduced by Government of India in 1998 to ensure easy credit availability to farmers from Banks.This scheme was not very popular during initial years due to various reasons mainly less interest shown by Banks due to NPA issues.But after the push from current government and RBI,it is mandatory for banks to show some part of their loan book as Agricultural loan.For domestic scheduled commercial banks(like SBI,Indian bank,Bank of India,Syndicate Bank,ICICI Bank,Federal Bank etc) they should show 18% of the total outstanding loan as Agricultural loan.A sub limit of 8 % is allocated for small and marginal farmers.
Kisan Credit card is one of the smartest way to ensure reach of easy Agricultural loan facility to farmers.It facilitates farmers to purchase Agricultural inputs such as Seeds,Fertilisers,Pesticides etc and use cash for their day to day farm expenses.It also ensures credit availability for post harvest expenses.
An ATM Enabled Rupay Debit card will be provided for farmers who successfully join KCC. A flexible amount from 10000 to 50000 is provided for marginal farmers(Farmers with landholding up to 1 Hectare) as Flexi KCC. The KCC limit is to be fixed for 5 years.The amount can be revised whenever need arises and farmers can approach bank in such scenarios.
For small farmers(Landholding 1 to 2 Hectares) and other large farmers up to 3 lakh loan is available.Above 1.6 Lakhs, collateral security is to be provided. Upto 1.6Lakhs,No such security is required.
The Main attraction of this Credit facility is that the interest rate is 7% only.Apart from this, 3% interest subvention is provided for prompt repayment of the loan.This makes interest rate of Kisan Credit card 4% effectively.
How to Apply for KCC
You can apply by visiting Bank branch and submitting duly filled application form.The KCC application form is available in the Link. Your identity,Address proof and land documents will be required.It will be an added advantage of you approach the same Bank branch where your PM-KISAN account exists.Banks are giving priority to their existing PM KISAN Members.
Detailed Master Circular issued to Banks by RBI on 4th July 2018 regarding Kisan Credit Card is given in the link.You can Visit the link to Read the Kisan Credit card RBI Circular
The Circular released by Ministry of Finance is given in below Link.You can get details of Kisan Credi Card(KCC) Scheme from this Circular also.
It is expected that all farmers who has availed PM-KISAM amount of Rs.6000,get benefit of KCC also.Requesting all farmers to visit bank branch to avail the credit.Farmers should avail all such scheme benefits so that Government's plan to promote Agriculture is achieved.
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