Introduction to Kisan Credit Card :
- Scheme was introduced in 1998-99 on the recommendation of R.V Gupta committee, to make access to credit availability to the farmers.
- The scheme was prepared by the National Bank for Agriculture and Rural Development (NABARD).
- It is based on land holdings by farmers so that the he/she can get credit for purchase of agriculture input such as Seeds, Pesticides, Fertilizers etc.
- Government provides interest subsidy of 2% and Prompt Repayment Incentive of 3% to the farmers, thus making the credit available at a very subsidized rate of 4% per annum.
- It is being implemented by the all Co-operative banks, Regional Rural Banks and Public Sector Banks throughout the territory of India.
Objectives of Kisan Credit Card :
- Meet short term credit requirements for cultivation of crops.
- Providing credit in time of requirement.
- To support post-harvest expenditures.
- Working capital for farm assets, activities allied to agriculture.
- Credit requirement for agriculture and allied activities for land ,pumps , irrigation etc.
- Consumption requirements of farmers.
Features / Benefits of the Kisan Credit Card :
- The beneficiaries under the scheme will be issued with a Debit card / Smart card .
- Eligible farmers will be provided with a Kisan Credit Card and a pass book .
- Cash credit facility involving any number of withdrawals and repayments within the limits.
- Limits to be fixed on the basis of scale of finance, operational land holding and cropping pattern.
- Withdrawals through slips or cheques.
- Validity of Card for 5 years which is subject to annual review.
- An incentive for good performance.
- Security,rate of interest etc. as per RBI norms.
- In case of crop failure due to natural calamities Conversion/reschedulement of loans also permissible .
Eligibility for Kisan Credit Card :
- The small farmers.
- The marginal farmers.
- Share croppers.
- Lessee and tenant farmers.
- The self-help groups (SHGs) or joint liability groups(JLGs).
- This scheme also extends to the fisheries and animal husbandry sector.
- Age limit :Minimum Age – 18 years and Maximum Age – 75 years.
- If a borrower is a senior citizen (above 60 years), a co-borrower is mandatory ( should be a legal heir).
Determining the credit limit of Kisan Credit Card by bank for initial years:
- Household / post-harvest consumption requirements.
- The cultivation of crops according to the scale of finance and cropping pattern proposed.
- Expenditures/Investments related to the maintenance of crop insurance, farm assets, asset insurance and personal accident insurance scheme (PAIS).
Loan Amount for Kisan Credit Card :
- Upto Rs. 3 Lakh.
- Government provides interest subvention of 2% and Prompt Repayment Incentive of 3% to the farmers, making the credit availability at a effective rate of interest , only 4%.
Rate of Interest :
- Rate of Interest will be based on Base Rate and which is left to the discretion of the banks.
Repayment Period :
- Each withdrawal under the short term sub-limit is allowed to be withdrawn in 12 months without the need to bring the debit balance in the account to zero at any point of time.
- Withdrawal should not remain outstanding for more than 12 months.
- The term loan generally will be repayable within a period of 5 years depending on the type of activity / investment as per the existing guidelines applicable for investment credit.
- Financing banks on the type of investment, with there discretion can provide longer repayment period for term loans.
Security for Kisan Credit Card :
- Hypothecation of crops as per prevailing RBI guidelines for card limits up to Rs.1 lakh .
- Hypothecation of crops, additional collateral security at the issuing bank’s discretion for card limits up to Rs.3 lakh .
Documents Required for Kisan Credit Card :
- Duly filled in application form.
- Identity proof-:Voter ID card / PAN card / Passport / Aadhaar card / Driving License etc.
- Address proof: Voter Aadhaar card / Driving license ID card / Passport / etc.
- No dues certificate from the bank.
Additional Insurance Scheme with Kisan Credit Card :
- With this Kisan Credit Card , social security to the PM KISAN beneficiaries is also being provided, eligible farmers will also be enrolled for the Pradhan Mantri Suraksha Bima Yojana(PMSBY) and Pradhan Mantri Jeevan Jyoti Beema Yojana(PMJJBY), after obtaining their consent.
- These schemes provide accident insurance and life insurance, at a premium of Rs.12/- and Rs.330/- respectively for an insured value of Rs.2 lakh in each case.
How to get KCC- Kisan Credit Card :
- First the beneficiary Kisan will have to visit PM Kisan Portal https://www.pmkisan.gov.in/ OR visit Banks website directly OR go to bank to get the form.
- After which, click on the link “Download KCC Form” in the main menu on the web homepage .
- After which, the KCC loan online application form will open.
- Fill the information asked in the KCC loan application form correctly.
- Farmers have to go to the bank and submit it themselves.
- The loan officer after considering all the conditions will set the limit of Kisan credit card loan and asked for collateral if the loan amount is above Rs.1.60 lakh.
- After getting approval by the bank, KCC loan card will be made available to the beneficiary of PM Kisan Samman Yojana within 14 days.
Kisan Credit Card is offered by :
- National Payments Corporation of India (NPCI)
- State Bank of India (SBI)
- Industrial Development Bank of India (IDBI)
- Cooperative banks
- HDFC Bank
- Axis Bank
- Punjab National Bank
- Beside these, this scheme is being provided by other Nationalized Banks also.
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