Kisan Credit Card Scheme Introduced by the Central Government

Learn about the Kisan Credit Card Scheme: The Kisan Credit Card is a long-term agricultural loan provided in easy installments. Farmers often require sudden financial assistance for their agricultural activities. Now, farmers can easily obtain agricultural loans at very favorable installment rates without any hassle by mortgaging their land. This loan is named the Kisan Credit Card, and it was introduced by the Central Government for the benefit of farmers. This loan is provided to farmers to cover the expenses incurred in their farming activities. This loan is made available to farmer brothers by regional rural banks and government banks at low-interest rates (4 percent), enabling them to meet the expenses for cultivation, sowing, seeds, and fertilizers. This scheme was initiated by the Government of India in collaboration with the Reserve Bank of India and NABARD.

Eligibility for Kisan Credit Card (KCC) 2023: To avail the benefits of this loan, farmer brothers need to approach their nearest bank. For this, they need to submit their Aadhar card, PAN card, and documents related to agricultural land such as the land record, lease, and ownership documents to the bank. The bank will then prepare a CIBIL report based on the farmer's previous loans, age, and other documents provided. If the loan amount is only up to 1.60 lakh, the bank can grant the loan based on these documents. For loans exceeding this amount, the documents need to be verified in the Tehsil office. Once all documents are in order, the bank will open your KCC loan account in their branch. Once the loan amount is determined, you can withdraw and deposit the required sum at any time within five years.

Eligibility for Kisan Credit Card: Those who own land are eligible to apply for the Kisan Credit Card.
Benefits of the Kisan Credit Card: The Kisan Credit Card has provided economic and technological assistance to Indian farmers. The terms and conditions of the loan obtained through banks under the Kisan Credit Card scheme are quite favorable. Farmers get relief from high-interest rates on loans. Most importantly, it has helped farmers escape the clutches of moneylenders. With the Kisan Credit Card, farmers can timely carry out activities such as plowing, sowing, and irrigation in their fields, leading to an increase in both production and income.

Land Requirement for Kisan Credit Card: The amount of land required for a Kisan Credit Card and the loan amount available on it are determined annually by the District Level Technical Committee (DLTC) under the jurisdiction of the District Magistrate.
Interest Rate on Kisan Credit Card: If you have taken a loan of 3 lakh rupees on the Kisan Credit Card, you will receive a discount on the interest rate if you make timely payments every year. This is the cheapest loan in the country, and if you avail of it, you will find that your interest rate remains as low as 4 percent, while also benefiting from government subsidies.

Procedure for Agricultural Land Ownership Transfer: Ownership rights of any land are not transferred until the land is completely free from any encumbrance. The transfer of encumbrances is done with the mutual consent of both parties.
Accident Insurance for Kisan Credit Card: When banks grant loans under the Kisan Credit Card scheme, individual accident insurance of 50,000 rupees is provided to cardholders. All Kisan Credit Cardholders up to the age of 70 are eligible for this. Farmers need to pay a premium of only 5 rupees for this. Additionally, the bank contributes 10 rupees towards the premium. For a farmer, the premium is 15 rupees for three years of insurance coverage.

Insurance Period: The insurance company provides coverage from the date of receipt of the premium. If the premium is paid for one year, the coverage is for one year, and if the annual premium payment is made for three years, then the coverage is for three years.

Application for Kisan Credit Card: The easiest way to apply for the Kisan Credit Card is to visit any branch of your nearest bank. If you prefer to apply online, you can visit the official PMKISAN website to learn more about KCC and apply.

Official Website: KCC APPLICATION FORM DOWNLOAD