What is a Kisan Credit Card (KCC)?
What is a Kisan Credit Card? (KCC). Kisan Credit Card is the leading credit distribution system for providing adequate and timely credit to farmers. The Kisan credit card is a very simple and easily available process under which farmers can borrow money for agricultural activities. A credit card and passbook are provided to farmers under Kisan Credit Card. In which the name of the consumer, address, land information, loan period, validity period, and passport size photo of the consumer are indicated as information. This card also works as an introduction letter.
The Kisan credit card was introduced by Finance Minister Yashwant Sinha in 1998-99, at that time the Finance Minister had said in his speech that under the KCC scheme, the farmers can buy fertilizer seeds, fertilizers, and pesticides. NABARD has formulated an Ideal Kisan Credit Card scheme by discussing with the major banks. This scheme was started with the Reserve Bank.
Benefits Of KCC
The main objective of this scheme was to reduce the dependency on the informal bank to borrow money from the farmers. You can make a Kisan Credit Card (KCC) from any government or private bank. Any farmer in India can avail the benefits of this loan. It is easy to take a loan under this scheme and its payment process is less complex than any other. Loan payments can be increased further if there is a loss due to bad weather or any other natural disaster.
- Every small big farmer can take a loan on the KCC scheme.
- The process of taking a loan has been kept quite simple so that the small farmers who do not have much information can easily complete the process. For which the farmers will have to give the necessary documents only once.
- Under the KCC, the farmer does not have to take the loan process every year. In this way, this work gives relief from time and stress. In this, the farmer gets a loan credit.
- The loan rate in this scheme is very low. There is no burden on the farmers.
- The credit card is linked to the farmer’s savings bank account, so if there is some money left in the account, then he will get interested in it.
- Farmers can pay the credit card debt at the time of the farmer’s convenience, ie after the sale of the crop.
- Farmers can take money from any branch of Kisan Bank through credit card.
- Under this scheme, farmers also get personal insurance.
Type of Loan in KCC
As you may know, loan rates on KCC are much lower than others. In this scheme, farmers can avail a loan of up to 3 lakh on which the government gives subsidy in which the interest rates are very low. The loan given in this scheme comes in 2 categories.
- Crop Loan: In this, farmers can take loans up to 3 lakh more than the maximum, which is 7% interest annually. Whose time the payment is made, 3% of the subsidy is obtained, which is why it remains 4% annually. These loans are within 3 lakhs, and depending on credit history and other things, the loan will be available to anyone.
- Term Loan: The loan taken above 3 lakhs comes in the term loan. The loaning bank decides to pay no more than 3 lakh or to give it. The bank which determines the interest on this determines the bank. There is no subsidy on behalf of the government.
Documents required for KCC
Basic documents below any bank are required to take this scheme:
- The KCC Application form is filled.
- Copy of identity card which may be Aadhar card, pen card, driving license or voter id.
- Copy of Address Proof which can be Voter id, Aadhar Card or Ration Card.
- Land record
- Passport size color photo
- A guarantor whose account is in the same bank and his signature
- If the first loan is done then its complete record.
The first step to make a KCC and to take a loan is to select the bank. Because most banks offer you KCCs. So, first of all, we have to go to the bank to find out who is the best bank to whom you can get loan easily and in low-interest rates. Some of the banks which support the KCC.
- State Bank of India (SBI)
- Syndicate Bank
- Axis Bank
- Bank of India
- IDBI Bank
- Nabard bank
- NPCI Rupay Credit Card
I hope you have got full information about the KCC scheme, loan, interest rate, and the necessary documents. Please don’t forget to share it with your friends.