India

What is a Kisan Credit Card and How to Avail One

The Kisan Credit Cards (KCC) scheme was launched by the Government of India in 1998 with the objective of extending credit to farmers in a timely manner.  The idea behind KCC is to give farmers access to short-term, formal credit through the National Bank for Agriculture and Rural Development (NABARD). The various sectors covered under the Kisan Credit Card scheme include agriculture, animal husbandry as well as fisheries. The KCC loan is given out to these individuals on a credit card limit in order to buy equipment required in their professions and meet other expenses.

The interest payable on Kisan Credit Cards can be as low as 2% and on average at 4%. It is an attractive alternative to the high interest rates payable on other types of loans. Such a scheme allows farmers to repay their dues based on the harvest period of the crop for the growth of which the farmer has taken the loan.

 How to Apply for Kisan Credit Card Loan?

 Farmers can apply for a Kisan Credit Card both online and offline. If you’re looking for a Kisan Credit Card online apply steps,  follow the following steps –

  • Go to the website of the bank from where you wish to apply for the KCC loan
  • Look for the list of loans available with the bank, and choose the Kisan Credit Card option
  • Click on the ‘Apply’ button after which you will be directed to the application page.
  • Enter all the required details and submit your application.
  • You will receive an application number upon submission.
  • If your application is approved and you are eligible, the bank will begin the loan disbursal process within 3 to 4 working days.

You can also apply for the KCC loan in an offline manner. Follow these steps to file your offline application for the Kisan Credit Card –

  • Either download the application form from the bank website and print it out, or get an application form from the bank branch itself.
  • A bank representative will help you in filling out the application form.
  • Once filled, you can submit the application and clear all other formalities.

 Conclusion

 There are many benefits to applying for a Kisan Credit Card. You can get funds for agricultural requirements like equipment and livestock. Through this scheme farmers can also get a loan of up to Rs 3 lakh and insurance of up to Rs 50,000 in case of death or permanent disability. Some other risks are covered to the extent of Rs 25,000. Eligible farmers can also get  a savings account with the bank through which they apply. The repayment of such KCC loans is flexible, and credit can be taken up for a period of 3 years.

The benefits of this scheme are not limited to just land-tilling farmers, but can also be availed by marine and inland fishery, dairy and poultry farmers

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