The government's Kisan Credit Card (KCC) scheme aims to reach out to over 1 Crore farmers. This scheme seeks to offer a formal credit source so that beneficiaries avoid hassles that may arise by availing funds from an informal source. Farmers can avail of advances at a nominal interest rate through this scheme.
What is a KCC card?
This card ensures that individuals can obtain financing from financial institutions at affordable interest rates. It is a specialized credit card with which farmers can withdraw the sanctioned funds.
Farmers can also use this card at any point of sale and ATMs. It can fund any required expense, such as seeds, fertilizers, diesel, and electricity.
Eligibility criteria
To enjoy benefits under the Kisan Credit Card scheme, individuals must belong to the following categories:
- Individual farmers who are owner-cultivators.
- Farmers belong to joint groups that are owner-cultivators.
- Farmers who are sharecroppers, tenant farmers, or an oral lessee.
- Share groups and joint liability groups of sharecroppers, tenant farmers, etc.
Required documents
- Farmers must submit the following documents and an application form to apply for the KCC scheme.
- Identity proof, such as any government-authorized document, including an Aadhaar card, Voter ID Card, PAN card, driving license, etc.
- Address proof, such as KYC documents.
- Documents of the owned land.
- Passport-size photographs.
- Post-dated cheque if requested by a financial institution.
- Benefits of a Kisan Credit Card
Farmers applying under the KCC scheme can enjoy the following benefits:
Flexible repayment options
The KCC scheme offers farmers an extensive range of repayment options. They can borrow funds for up to 3 years and repay an amount upon the completion of a harvest season. This ensures that they can effectively repay their credit card debt.
Single credit facility
Cards issued under the KCC scheme ensure a single facility for farmers to avail of credits for all their required expenses. They can use the funds to pay for any of the costs related to cultivation.
Minimum documentation and hassle-free disbursal
The documentation process to obtain such credit cards is minimal. Farmers can apply for a card under this scheme by filling out an application form and submitting the required documents.
Furthermore, financial institutions approve the card within a few working days. After approval, they provide the farmers with a passbook and a credit card. Individuals can use a credit card to withdraw funds from any ATM across the country.
Application process
Individuals must follow the steps below to apply for a credit card under the KCC scheme.
- Step 1 – Visit the official website of any authorized financial institution and click on the Kisan Credit Card section.
- Step 2 – Apply for the card by filling in the personal details required and submitting them.
- Step 3 – If the application is approved, a representative from the financial institution will get in touch, and the applicant has to submit the required documents.
Farmers can also visit the nearest branch of any authorized financial institution to apply for a credit card.
Furthermore, if an individual is not eligible for this scheme and wants a credit card with ample benefits, they can opt for other credit cards like the Bajaj Finserv RBL SuperCard. Cardholders can enjoy benefits like interest-free ATM cash withdrawal for 50 days, instant personal loans against credit limits, and more.
The KCC scheme ensures that farmers can access the required funds from a formal establishment hassle-free. Additionally, the introduction of the National Common Mobility Card ensures that they can transport the cultivated crops conveniently.
