Kisan Credit Card (KCC) Scheme: How to Apply

Kisan Credit Card (KCC) Scheme:

The Kisan Credit Card (KCC) scheme is an essential financial instrument designed to offer farmers timely and sufficient credit support to meet their non-farm and agriculture requirements. The scheme was launched to ease the process of getting credit for farmers; this KCC scheme is crucial for farmers to control their farming, post-harvest operations and the associated expenses effectively. Here is a comprehensive guide to help you comprehend the KCC program, its advantages, eligibility requirements, and what you need to do to be eligible.

Objectives of the Kisan Credit Card Scheme

KCC is a KCC scheme designed to meet the needs of farmers’ financial institutions, providing credit in a single location that is flexible and easy to follow. The credit that KCC provides can be used for a variety of purposes. KCC may be used to meet a variety of reasons, such as:

• Credit for short-term conditions For the cultivation of crops and other similar activities.
• Post-harvest expenses: Covering costs incurred after harvesting crops.
• Marketing loan for produce Aiding farmers in marketing their products.
• Household consumption requirements help household farmers with the expenses of daily life.
• Work capital is needed for the management of farm assets as well as other agricultural activities.
• Credit for investment for long-term investments in agriculture and related activities.

Types of Kisan Credit Cards

Kisan Credit Card Kisan Credit Card is a versatile financial tool available in various formats to meet the varied demands of farmers.

• Magnetic Stripe Card with PIN The card is a standard card with a PIN and magnetic stripe, which is compatible with all ATMs and Micro ATMs.
• Biometric authentication: Banks can issue cards with biometric authentication based on UIDAI, improving security.
• EMV and RUPAY-compliant chip cards offer additional security features and are internationally acknowledged.

Delivery Channels for KCC

Kisan Credit Card Kisan Credit Card can be utilized across a variety of platforms, which means that farmers have access to their money:

• ATM/Micro ATM Cash withdrawals: Farmers can withdraw cash whenever required.
• Innovative card transactions using BCs: Employing Business Correspondents to make transactions in remote locations.
• PoS Equipment at input dealers Facilitating the payment of inputs to agriculture.
• Mobile Banking using the IMPS Fast cash transfer capability.
• Aadhaar-Enabled Transactions Secure transactions that are linked to Aadhaar to increase security.

Benefits of the Kisan Credit Card

The KCC scheme provides a variety of advantages, making it an essential resource for farmers.

1. Fixation of Credit Limit/Loan Amount :
   • 1st-Year Cap Calculated based on the crop financing needed, post-harvest costs such as maintenance and insurance.
   • Subsequent years: The limit is increased yearly by 10% to allow for cost increases and changes in the cropping pattern.
2. Term Loans :
   • Farmers can get loans to invest in agricultural development, minor farm equipment and irrigation, and other agriculture-related activities. The loan amount is according to the unit price for the property, its current operations, and the farmer’s capacity to repay.
3. Maximum Permissible Limit (MPL) :
   • The MPL combines the loan limit for short-term borrowing for the 5th year and the projected needs for loans over the long term, acting as the total Kisan Credit Card limit.
4. Sub-Limits :
   • Sub-limits for separate sub-limits are available for cash loans with short-term term and term loans, which cater to various interest rates and repayment times. The farmer can draw money when required, allowing them to be flexible in managing their finances.

Eligibility Criteria for Kisan Credit Card

To apply for a Kisan Credit Card, the following groups are eligible for application:

• Joint Owner/Individual Cultivators Farmers own and cultivate their land.
• Renters, Lessees, and Sharecroppers: individuals who cultivate on shared or leased land.
• Self-Help Groups (SHGs) and Joint Liability Groups (JLGs): Groups of farmers, which include sharecroppers and tenants who apply jointly for credit.

Application Process for Kisan Credit Card

Farmers can apply for a Kisan Credit Card through both offline and online methods:

• Offline Process :
  1. Go to the branch at the bank.
  2. Download and fill out the KCC application form. KCC request form.
  3. Fill out the form together with the appropriate documents.
• Online Process :
  1. Visit the official website, where you can Apply to submit your application.
  2. Choose your Kisan Credit Card option from the menu.
  3. Fill in an online form and provide the required information.
  4. Fill out the form to receive an applicant reference number.
  5. If they meet their eligibility requirements, a bank representative will call you within 3-4 business days.

Required Documents for Kisan Credit Card Application

If you are applying for the Kisan Credit Card, ensure that you have the following documents in hand:

• Completed Application Form.
• Two Passport Size Photographs.
• ID Proof: Driving License, Aadhar Card, Voter Identity Card, or Passport.
• Address Proof: Such as Driving License or Aadhar Card.
• Evidence Of Landholding Accredited by the Revenue authorities.
• The Cropping Pattern Details on the crops cultivated and the acreage.
• Security Documents: For loan limits above Rs.1.60 lakhs / Rs.3.00 lakhs.
• Other documents are needed from the institution.

Conclusion

Kisan Credit Card Scheme The Kisan Credit Card scheme is a vital source for farmers, offering them the financial assistance required to run their agricultural operations efficiently. If they know the advantages, eligibility requirements, and application procedure, farmers can fully benefit from this scheme to ensure their farming operations run smoothly.