Table of Contents
- 1 Kisan credit card scheme – Latest news
- 2 Concessional credit under the AatmanirbharBharat package
- 2.1 Documents required to apply for Kisan Credit Card scheme
- 2.2 How to apply for kisan credit card scheme online
- 2.3 How to apply for kisan credit card scheme offline
- 2.4 How to Apply for Kisan Credit Card under PM Kisan Samman Nidhi Scheme
Kisan credit card scheme – Latest news
The Kisan Credit Card (KCC) scheme was introduced in 1998 for issue of Kisan Credit Cards to farmers on the basis of their holdings for uniform adoption by the banks so that farmers may use them to readily purchase agriculture inputs such as seeds, fertilizers, pesticides etc. and draw cash for their production needs.This scheme was prepared by the National Bank for Agriculture and Rural Development (NABARD)
What is Kisan Credit Card Yojana and how does it help farmers
Farmers in India are majorly small scale farmers and they require financial support for their farming. For this they reach out to local financial organizations which charge them a very high interest rate. In order to help the Farmers, the central government of India introduced a scheme called Kisan Credit Card Yojana, which helps farmers to lend money from the Banks with very less documentation and reasonable interest rates.
Key Features of Kisan Credit Card
1) The Interest rate will be very very low and it is in between 7% to 14% depending on the financial institution
2) No security till 1.60 lakhs
3) Crop Insurance from Crops against natural calamities
4) Insurance for farmers if any disability or death happens
5) At max a farmer can get 3lakh loan under this scheme
6) The prepayment period starts after 5years after taking loan and should be paid in 12 months.
7) Simple Interest rates are charges if farmers are making regular payments
8) Prepayment is decided based on the crop for which the farmers taken the loan
9) If farmers fail to pay the loan then compound interest will be applied
Concessional credit under the AatmanirbharBharat package
Earlier, under the Aatma Nirbhar Bharat Package, Finance Minister Nirmala Sitharaman on 15 May 2020 had announced provision of a concessional credit of Rs 2 lakh crore which is likely to benefit 2.5 crore farmers, including fishermen and dairy farmers through Kisan Credit Card scheme.
In an effort to buffer the agricultural sector from the shock of COVID-19, a special saturation drive is underway to provide concessional credit to farmers through Kisan Credit Card (KCC). As on 17.08.2020, 1.22 crore KCCs have been sanctioned with a credit limit of Rs. 1,02,065 crore. This will go a long way in reviving the rural economy and accelerating agricultural growth,” the Ministry of Finance said.
As on 24.07.2020, 111.98 lakh Kisan Credit Cards have been sanctioned with credit limit of Rs.89,810 crore out of Rs 2 lakh crore concessional credit under the #Aatma nirbhar Bharat package to help farmers meet finances for kharif sowing and allied activities. This marks an increase of Rs 26,940 crore over Rs 62,870 crore sanctioned to 70.32 lakh KCC holders as on June 30.
Documents required to apply for Kisan Credit Card scheme
- Duly filled-in and signed-in application form.
- Copy of identity proof such as Aadhaar card, PAN card, Voter ID, driving license, etc.
- Copy of address proof documents such as Aadhaar card, PAN card, Voter ID, driving license. Land documents.
- A passport size photograph of the applicant.
- Other documents such as security PDC as requested by the issuing bank.
How to apply for kisan credit card scheme online
- Visit the website of the bank you wish to apply for the KCC scheme
- choose the Kisan Credit Card from the list of options shown
- On clicking the option of ‘Apply’, the website will redirect you to the application page.
- Fill the form with the required details and click on ‘Submit’.
- On doing so, an application reference number will be sent.
- If you are eligible, the bank will get back to you for the further process within 3-4 working days.
How to apply for kisan credit card scheme offline
- Go to nearest bank which offers kisan credit card
- Talk to the Loan officer and fill the details in the application form
- Submit the documents required accordingly
- Farmer will receive the Kisan Credit card via post to their residential address
Banks Offering Kisan Credit Card
SBI Kisan Credit Card: Many farmers get kisan credit cards from SBI, because this is a government bank and they charge very less interest rate which is 2% per year.
There are many other banks which provide kisan credit card which are Axis Bank, HDFC bank, Punjab National Bank, and other bank
How to Apply for Kisan Credit Card under PM Kisan Samman Nidhi Scheme
Post the release of the Budget 2020, All beneficiaries under the Kisan Samman Nidhi Scheme can now get a Kisan Credit Card.
- Fill a one-page form which is available on the website of all commercial banks
- Fill in all your basic information like crop sown and land record
- You have to submit this form to the Common Service Centers (CSC) and they will transfer the forms to all banks
PM Kisan Credit Card Toll Free Number: 1800-180-1551