The Government of India created the Kisan Credit Card (KCC) special credit card program to provide farmers easy access to credit at reasonable rates. It seeks to assist agricultural operations and fulfill the country’s farmers’ needs for short-term finance. Launched in 1998, the Kisan Financing Card program has been crucial in empowering farmers by giving them access to a dependable source of financing. Numerous adjustments were carried out for farmers under this program till 2023. which provides the farmers with the advantages of this loan option as well as additional amenities.

Which banks will you get a loan from?

Several financial institutions, including commercial banks, cooperative banks, and local rural banks, issue the Kisan Credit Card. This card is intended to provide farmers with various financing options for both agricultural and related operations. It provides a one-stop shop for farmers’ credit requirements, doing away with the need for several loans and paperwork.

What is the Kisan Credit Card (KCC) process?

You must visit your neighborhood commercial bank, cooperative bank, or regional rural bank to have KCC created. You must pick up an application for a Kisan Credit Card here. You must include both personal and agricultural information, such as your name, address, and information on your property and crops, in the application form. You must also provide information about your income and former debtors in accordance with the requirements. You will also need to send a few necessary papers in addition to the application form. These might include certified copies of your income, proof that you own agricultural property, evidence that you have dealt with creditors before, etc. The bank will make the allocation for your Kisan Credit Card after confirming the application form and supporting documentation you supplied. A copy of a Kisan Credit Card and other relevant documentation will be sent to you.

Utilizing the Kisan Credit Card

Applying a Kisan credit card: Once you have a Kisan Credit Card, you may use it to fulfill your credit obligations for farming and related endeavors. It makes it easier for you to pay the costs associated with purchasing, irrigating, storing, and selling agricultural machinery, fertilizers, insecticides, and other equipment.

Additional advantages of the Kisan Credit Card Loan

Access to credit: Based on farmers’ land holdings and agricultural practices, KCC pre-approves loan limits for them. This credit may be used to pay for the costs associated with irrigation, storage, and marketing as well as to buy agricultural inputs such seeds, fertilizer, pesticides, and equipment. The KCC program’s goal is to make it easier for farmers to apply for loans. Farmers may easily apply for loans because of the simple application procedure and minimum documentation requirements.

Current credit card interest rate for PM Kisan

The interest rate of the KCC loan is now decided in numerous different ways. simply at a cost of 4% yearly interest will you be able to get this loan if you simply need up to Rs 3 lakh? However, if you wish to borrow more than this, you will need to pay it back in many payments. Farmers have the option of paying back the loan they got from KCC at their leisure. Flexible payments that correspond to the harvest and marketing time may be used for repayment. To promote prompt repayment under the Kisan Credit Card program, the government offers interest subsidization. Farmers are urged to return the loan as soon as possible since this lessens their burden of interest.

Farmers’ insurance coverage

Holders of KCCs are also qualified for accident insurance, which offers farmers and their families financial security in the event of unexpected circumstances. Farmers’ financial inclusion has increased as a result of the Kisan Credit Card, and their reliance on unofficial credit sources has decreased. By enabling prompt access to loans for necessary inputs and enhancing farmers’ cash flow management, it has contributed to an improvement in agricultural production.

In 1998, this approach was first introduced. After that, it also comprised a lot of subsequent successful methods. About 7 crore farmers in India now profit from this program.