What is Kisan Credit Card? Features, Benefits, Interest Rate & Eligibility

The Kisan Credit Card scheme is a credit scheme introduced in August 1998 by Indian banks. This model scheme was prepared by the National Bank for Agriculture and Rural Development on the recommendations of R.V.GUPTA committee to provide term loans for agricultural needs.

Kisan Credit Card or KCC is an initiative by the Indian Government to ensure that farmers of the country have access to credit at a reasonable rate. The scheme was introduced in August 1998 and was based on the recommendations of a special committee formed for inputs on loans & agricultural welfare. KCC Loan provides term loans to the farmers for covering cost of farming, harvest & farm maintenance.

The Kisan Credit Card  (KCC) scheme was introduced with the aim to provide short-term credit to the farmers in India. Farmers can easily avail loans to meet their agricultural needs & requirements through Kisan Credit Cards at attractive rates of interest. Government has also made the application process easier to increase farmers' interest in it.

Kisan Credit Cards Features and Benefits

• Flexible repayment options & hassle-free disbursement procedure.

• Single credit facility or term loan for all agricultural & ancillary requirements.

• Assistance in purchase of seeds, fertilizers etc. as well as in availing cash discounts from merchants or dealers.

• Credit is available for a period of up to three years & repayment can be made once the harvest season in over.

• Minimal documentation & maximum flexibility offered for withdrawal of the required funds from the issuing bank.

• Funds can be withdrawn from any of the bank’s branches across India.

Kisan Credit Cards Interest rates & Other Charges

According to the Reserve Bank of India, the fixing of Kisan Credit Card interest rates and credit limits can be decided by the respective issuing bank. However, the average interest rate applicable ranges from 9 to 14 percent p.a.

Besides, there are certain subsidies as well as schemes that the government provides farmers with regard to the interest rate. It depends on the repayment history & general credit history of the cardholder.

Other fees and charges like processing fees, insurance premium (if applicable), land mortgage deed charges etc. is set at the discretion of the issuing bank.

Who is eligible for Kisan Credit Card Loan Scheme?

You are eligible for a Kisan Credit Card if you are:

• An individual farmer who is an owner-cultivator.

• Belong to a group & are joint borrowers.

• Tenant farmer, sharecropper or an oral lessee.

• A self-help group or joint liability group of sharecroppers, farmers, tenant farmers, etc.