A large number of India’s population is working in the agro-economy. Indian farmers are responsible for 52% of the total Indian population, but they only contribute 17.32% to its GDP. This means, after all the hard work, they earn so little, which forces them to take money on loan from the lenders in the unorganised sector to meet their needs.
The Indian Government launched the Kisan Credit Card (KCC) scheme with the aim to save farmers from going into high-interest debt when they take loans from the local money lenders. This scheme was introduced through the NABARD in 1998 to fulfil the short-term money requirements of the farmers with the KCC loan.
Here’s how farmers avail the benefits under the Kisan Credit Scheme:
Eligibility Criteria for Kisan Credit Card
You must meet the following eligibility criteria to avail benefits under the Kisan Credit Card Scheme.
- The person should be involved in farming or allied activity and should own land or work on borrowed land, either individually or jointly.
- Individuals should be owners and cultivators, tenants, sharecroppers or oral lessees in agricultural land.
- Joint Liability Groups or Self Help Groups.
- The farmer who is eligible for a production credit of Rs. 5,000.
- Farmers are eligible for a short term loan for crop production or related to allied activities.
- Famer’s resident should be located in the bank’s operational area.
Documents required for Kisan Credit Card
To avail the benefits of the Kisan Credit Card, a person has to establish his identity and address. Here is a list of documents that the person has to submit to apply for the card:
Proof of Identity
- Aadhar card
- Voter’s ID card
- PAN card
- Driver’s License
- Person of Indian origin card
- An overseas citizen of India
- Letters issued by UIDAI
- NREGA issued job card
Proof of Address
- Aadhar card
- Voter’s ID card
- Driver’s License
- Passport
- Ration card
- Utility bill (It should from the last 3 months)
- Property Registration Document
- Bank Account Statement
- NREGA issued job card
- Card proving Indian origin
- Along with these documents, the bank also asks for passport size photographs.
How to apply for Kisan Credit Card Scheme?
There are two methods to apply for KCC, online and offline.
Online Method
- Visit the official website of the preferred bank and open the KCC section.
- Download and print the KCC application form.
- Fill out the form, attach necessary documents and submit it to the nearest bank’s branch.
- The loan officer will tell you all the necessary information about the KCC
- After that, KCC will be provided to the applicant
- Applicant can apply for the KCC loan right after he receives it
Visiting Branch Method
The applicant can visit the bank’s branch, fill out the application form, and attach the required documents. The applicant can also ask the bank personnel to help with the application process. After that, the loan officer will review the process and provide the applicant with the Kisan Credit Card.
Top banks that offer Kisan Credit Card
Kisan Credit Cards are provided by many banks under the supervision of NABARD (National Bank for Agriculture and Rural Development). Following are the top banks that offer the facility of providing KCC:
State Bank of India
Many people prefer to take KCC from the SBI. The bank charges a low interest rate of 2.00% per annum and provides loans to a maximum amount of Rs. 3.00 lakh.
Punjab National Bank
PNB provides a simple and easy process to people who want to have a KCC. The bank has made a speedy disbursal system so that people in need won’t have to wait for too much to arrange money in the time of need.
HDFC Bank
HDFC Bank charges an interest rate of 9.00 per annum. It offers a loan with a maximum amount of Rs. 3 lakh and also provides a cheque book with Rs. 25,000 as its credit limit. To help the farmer in times of distress, the bank gives an extended period of up to 4 years (or more in some cases) for loan repayment if the farmer suffers loss in case of crop failure. HDFC also gives insurance benefits against pest attacks or natural calamities.
Axis Bank
Axis bank charges an interest rate of 8.85% on KCC loans. However, with the additional schemes of the government, the bank also provides loans at a lower interest rate than this.
The Kisan Credit Card is an ideal instrument for farmers to arrange money to meet their agricultural needs. The aforementioned guide will help all the entitled farmers to avail all the benefits that the Kisan Credit Card brings. Until this date, the scheme has benefited crores of Indian farmers and this number is still increasing.