Agriculture World

Kisan Credit Card Scheme: How Poultry, Dairy, Marine & Fish Farmers Can Get Loans at Affordable Rate of Interest?

Abha Toppo
Abha Toppo
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The Centre launched Kisan Credit Card scheme to provide short-term formal credit to farmers of the country. Both owner cultivators and tenant farmers can take loans to meet their agricultural requirements through Kisan Credit Card scheme at affordable rate of interest. In addition, Centre has simplified the application procedure to increase farmers’ interest. It has also extended the facility of KCC scheme to fisheries & animal husbandry sector.

Features of Kisan Credit Card Scheme

  • To meet short-term credit needs for crop cultivation

  • For post-harvest expenses/costs

  • Consumption needs of farmer household

  • Produce Marketing loan

  • Short-term credit requirements for the rearing of animals, birds, fish, shrimp etc.

  • Ancillary credit for crop production & other contingencies.

  • Investment credit for agricultural requirements like dairy animals, pump sets etc.

Benefits of Kisan Credit Card Scheme

  • No need to apply for loan for every crop

  • Helps farmers purchase seeds, fertilizers at his convenience & choice

  • Assured availability of credit at any time

  • Helps buy on cash-avail discount from dealers

  • Credit facility for three years – no need for seasonal appraisal

  • Maximum credit limit based on agriculture income

  • Repayment after harvest

  • Rate of interest as applicable to agriculture advance

  • Flexibility to draw cash and buy inputs.

kcc

Eligibility of Kisan Credit Card Scheme

  • All farmers or individuals or Joint borrowers who are owner cultivators.

  • Tenant farmers and Share Croppers.

  • SHGs / Joint Liability Groups of farmers (tenant farmers, share croppers etc.)

Eligible beneficiaries under KCC scheme under fisheries & animal husbandry include:

Poultry - Individual farmers/joint borrowers, SHGs, JLGs & tenant farmers of goats, pigs, sheep, rabbits, birds, and poultry with sheds either owned, rented, or leased.

Dairy - Farmers, dairy farmers, SHGs, JLGs & tenant farmers who have, lease, or rent sheds.

Inland Fisheries and Aquaculture - Fishers, fish farmers, SHGs and women groups. As a beneficiary, you should own /lease any activity related to fisheries.

Marine Fisheries - Must have a registered boat or any other fishing vessel with necessary license/permissions for fishing in the sea or estuaries.

Rate of Interest & Other Charges on Kisan Credit Cards

As per RBI, the Kisan Credit Card interest rates and credit limits can be fixed by the respective issuing banks. The average interest rate applicable basically ranges from 9 to 14% per annum.

Additionally, there are certain subsidies & schemes that the government offers cultivators with regard to the interest rate. These would depend on the repayment history & general credit history of cardholder.

Other fees & charges like processing fees, insurance premium, land mortgage deed charges etc. will be fixed at the discretion of the issuing bank.

farmers

Repayment Period

The repayment period for short-terms loans can be fixed by banks according to the anticipated harvesting & marketing period for the crops for which a loan has been given.

The term-loan component will be generally repayable within a period of five years depending on the type of activity or investment according to the existing guidelines applicable for investment credit.

Financing banks at their discretion could offer longer repayment period for term loan depending on the type of investment.

Documents needed to get KCC

  • Duly filled in the application form

  • Identity proof like Voter ID card/PAN card/Passport/ Aadhaar card,/Driving License

  • Address proof like Voter ID card/Passport/Aadhaar card/Driving license.

Features and Benefits of Personal Accident Insurance Scheme

Personal Accident Insurance Scheme covers the risk of Kisan Credit Card holders against death /permanent disability due to accidents caused by external, violent & visible means, as under - Death due to accident (within twelve months of the accident) caused by outward, violent & visible means - Rs.50000; Permanent total disability - Rs.50000; Loss of 2 limbs or 2 eyes or 1 limb and 1 eye - Rs.50000; Loss of 1 limb or 1 eye - Rs.25000.

Kisan Credit Cards offered by Various Banks

Bank

Credit Limit

Max Tenure

Insurance Coverage

SBI

Based on the crop cultivation and cropping pattern

5 years

Personal Accident Insurance Scheme, asset insurance & crop insurance

Axis Bank            

Up to Rs.250 lakh

5 years

Up to Rs.50,000

Bank of India

Up to 25% of the farmer’s estimated income

5 years

N/A

To avail loans through KCC scheme, visit your bank and ask for the details. 

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