The Kisan Credit Card Scheme was launched in 1998, and through this scheme, farmers get access to formal credit that they can use to buy seeds, fertilisers, pesticides and so on.
What is a Kisan Credit Card?
A Kisan Credit Card is a special provision through which a farmer can access low-interest funding from a bank. Here, farmers are also provided with a passbook containing details pertaining to the loan limit, land holding and beneficiary. Kisan Credit Cards are provided by commercial banks as well as state co-operative and regional rural banks.
Kisan Credit Card benefits
Here are some of the standout Kisan Credit Card benefits that farmers can enjoy.
Flexibility in loan repayment as farmers can pay post the harvest season
Uncomplicated loan disbursal procedure
Expandable credit limit based on income
Low interest rates compared to other loans
One loan for all agricultural needs
Availability of crop insurance
Discounts from dealers on selected transactions
Additional Read: Benefits of having a credit card
Credit limit available through Kisan Credit Card
According to RBI guidelines, lenders are free to decide the amount they want to sanction. This means that there is no fixed credit limit. For example, one institution may have a limit applicable to all applicants, while another may cap the amount at a percentage of the farmer’s income. Similarly, the financial institution may also consider crop area and patterns before setting the credit limit.
Kisan Credit Card Eligibility Criteria
To get funding through a Kisan Credit Card you must fall under one of these categories.
Individual farmer or a joint borrower who is an owner-cultivator
Self Help Group/Joint Liability Group that includes farmers, sharecroppers, tenant farmers, etc.
Tenant farmer, oral lessee, and sharecropper
Additionally, this scheme extends to the fisheries and animal husbandry sector. Thus, you can apply if you farm goats, fish, sheep and poultry.
How to apply for a Kisan Credit Card online?
To get a Kisan Credit Card online, apply via your preferred lender’s website. Here’s a step-by-step guide on how to go about it.
Steps to apply for Kisan Credit Card online
Visit the bank’s website
Scan through the list of available credit cards and select ‘Kisan Credit Card’
Apply for the card by filling details on the application page and then clicking on ‘Submit’
Note the reference number and wait for the bank to process your application
Submit the right documents to the bank and obtain the Kisan Credit Card
Additional Read: How to apply for a credit card online in 3 quick steps?
Revised Kisan Credit Card scheme / Pradhan Mantri Credit Card Yojana
From time to time the RBI makes changes in the Kisan Credit Card Scheme as per the needs of the agriculture sector. In 2012 the scheme was revised twice: once to modify instructions pertaining to disbursement and repayment, account classification and other features, and a second time to facilitate issue of electronic Kisan Credit Cards. Similarly, the 2016 revision made changes to paragraph number 13.
KCC loan borrowers stand to get a free smart card-debit card along with a Kisan Credit Card. However, if you are not eligible for this scheme and would like a card with ample benefits, consider the Bajaj Finserv RBL Bank SuperCard. It lets you make 50-day, interest-free cash withdrawals at ATMs, obtain a 90-day, interest-free personal loan from your credit limit, and convert purchases above Rs.3,000 into convenient EMIs. On the whole, it offers savings up to Rs.55,000 in a year.
To apply for this card online, check your pre-approved offer from Bajaj Finserv first. Single-step verification gives you instant approval and a chance to get a credit card through a customised deal.
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