Kisan Credit Card (KCC) Scheme

Kisan Credit Card (KCC) Scheme is a credit scheme introduced by the Government of India to provide timely and adequate credit to farmers for their agricultural and related activities. The scheme was launched in August 1998 by the Reserve Bank of India and the National Bank for Agriculture and Rural Development (NABARD). (Let’s see Diesel Anudan article)

Kishan Credit Card as a Gov Intiative

Contents hide
1 Kishan Credit Card as a Gov Intiative
1.1 Need
1.2 Features
1.3 Application Procedure
2 Conclusion

KCC

Under the KCC scheme, farmers can avail themselves of credit facilities in the form of cash credit or term loan from banks for various agricultural activities such as crop production, post-harvest expenses, consumption requirements of farmer household, working capital for maintenance of farm assets and activities allied to agriculture, like dairy animals, inland fishery, etc.

The credit limit under the KCC scheme is determined based on the scale of finance for the crop proposed to be cultivated and the farmer’s creditworthiness. The credit limit is reviewed and enhanced based on the repayment track record and performance of the farmer. KCC scheme has helped farmers to get access to timely and adequate credit without any cumbersome documentation and procedures. The scheme has also helped to reduce the dependence of farmers on informal credit sources and moneylenders, thereby reducing their financial burden.

Need

The Kisan Credit Card (KCC) Scheme was introduced by the Government of India in 1998 to provide farmers with affordable credit to meet their agricultural and allied needs. The scheme was implemented to support the farming community and enable them to access timely and adequate credit to meet their production and investment requirements. The main objectives of the KCC Scheme are:

  1. To provide timely and adequate credit to farmers to meet their agricultural and allied needs, such as purchasing inputs like seeds, fertilizers, pesticides, etc.
  2. To enable farmers to purchase machinery, equipment, and other agricultural assets to increase their productivity and income.
  3. To provide farmers with a flexible and convenient credit facility that can be used as per their requirement.
  4. To ensure that farmers have access to credit at an affordable rate of interest.
  5. To provide farmers with insurance coverage to protect their crops and assets against natural calamities and other risks.

Overall, the KCC Scheme plays an important role in supporting the agriculture sector and empowering farmers by providing them with access to credit and other financial services.

Features

Kisan Credit Card (KCC) Scheme is a credit scheme launched by the Government of India to provide timely and adequate credit to farmers. The features of the KCC scheme are as follows:

  1. Eligibility: The KCC scheme is available to all farmers, including sharecroppers, tenant farmers, and self-help groups (SHGs).
  2. Loan amount: Farmers can avail themselves of credit up to Rs. 3 lakhs for crop production and maintenance, and up to Rs. 10 lakhs for other purposes such as dairy farming, poultry farming, fisheries, and other allied activities.
  3. Flexible repayment: Farmers can repay the loan amount as per their convenience and cash flow, with no penalty for prepayment or early repayment.
  4. Interest rate: The KCC scheme offers low-interest rates, which are determined by the Reserve Bank of India (RBI) from time to time.
  5. Validity: The KCC card is valid for five years and can be renewed after the expiry of the period.
  6. Access to credit: The KCC scheme provides farmers with easy access to credit, thereby enabling them to meet their credit requirements without any hassle.
  7. Insurance coverage: The KCC scheme also provides insurance coverage to farmers against crop loss or damage due to natural calamities, pests, and diseases.
  8. Multiple withdrawals: Farmers can withdraw money from the credit limit as per their requirement and can also make multiple withdrawals.
  9. Easy documentation: The documentation process for availing of credit under the KCC scheme is simple, and farmers need to provide basic documents such as identity proof, address proof, and land papers.

Application Procedure

Kisan Credit Card (KCC) scheme is a credit facility introduced by the government of India to provide timely and adequate credit to farmers to meet their production credit needs, thereby facilitating agricultural growth. The scheme is implemented by various banks across the country. The application procedure for the KCC scheme is as follows:

  1. Visit the nearest branch of a participating bank and obtain the KCC application form.
  2. Fill in the required details in the application form, such as personal details, landholding details, crop details, etc.
  3. Attach the necessary documents, such as identity proof, address proof, land documents, etc., along with the application form.
  4. Submit the completed application form to the bank.
  5. The bank will process the application and conduct an appraisal of the applicant’s credit needs and repayment capacity.
  6. Once the application is approved, the bank will issue the KCC to the applicant.
  7. The KCC can be used by the farmer to withdraw credit as per their production credit needs.

It is important to note that the eligibility criteria and required documents may vary depending on the bank and the region. Hence, it is advisable to check with the respective bank for specific details before applying for the KCC scheme.

Conclusion

Overall, the Kisan Credit Card Scheme is an excellent initiative by the Government of India to provide timely and adequate credit to farmers and improve their financial status.

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