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 very high interest rate. In order to help the Farmers, central government of India introduced a scheme called Kisan Credit Card Yojana, which help farmers to lend money from the Banks with very less documentation and reasonable interest rates.
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Key Features and Objectives of Kisan Credit Card:
The Major objective behind implementing this PM Kisan Credit card is to help farmers lend money easily, faster way with less interest rates. Before this card implementation many of the farmers used to rely upon local money lenders and lend money for very high interest rates. Due to uncertainty in climate many of the farmers suffered losses and this did not help farmers.
So government decided to help farmers to provide these Kisan Credit cards with very minimal documentation process, low interest rate, flexible payment time on top of that government also provides crop insurance to these crops and all this is without taking any collateral from the farmers
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
Kisan credit card Eligibility Criteria:
Major eligibility is anyone who is engaged in Agriculture and agriculture allied activities. There are other criteria as shown below
Age: 18 to 75 Years
If the Person has more than 60yeas, he should refer to a co-borrower who is his legal heir.
This is even applicable to Tenant farmers who lease the land from the original Farmers
Documents required for Kisan Credit Card:
In order to apply for Kisan Credit Card, government made sure there is minimal amount of documents required and these are shown below
Identity Proof: PAN Card/ Aadhaar Card/ Voter Id card/ Driving Licence? Any other government approved identity card
Address Proof: Aadhaar Card/Passport/Utility bills like Electricity bills, Water bills, Gas bills, Land bills, (not more than 3months old) or any other government verified Address proof
Income Documents: Last 3months Bank Statement/ Last 3months Salary Slips if Employed/FORM 16 (or) ITR Returns/ Financials Audited Copy for last 2years for self employed Candidates
Kisan Credit Card Apply Online/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 banks
Repayment of Kisan Credit card loan:
- After 5years of tenure the repayment period starts.
- One has to pay the loan within 12 months.
Kisan Credit Card FAQs:
- How to apply for a Kisan Credit card ?
Go to your neared bank and talk to your loan officer to apply for Kisan Credit Card
- What is the Interest rate for PM kisan Credit card:
The interest rates starts from as low as 2% to 14% per year
- What banks give PM kisan Credit cards?
All major nationalized banks give PM kisan Credit cards. Reach out to nearest bank to get to know all the details
- What type of Insurance does farmers get?
Farmers get crop insurance when there are any natural calamities happen. They also get accidental coverage like any case for death and major illness.
- Who is eligible for this Kisan Credit Card card?
All the farmers who are involved in agricultural and its allied activities are eligible for this Kisan Credit card
- What documents are required for applying for a Kisan Credit card?
Majorly 3 types of documents Address proof, Identity proof and Income documents
- I don’t have any bank account, can I apply for a PM kisan credit card?
One should have a Bank account in any bank to apply for PM kisan Credit card
- What is the prepayment period?
The prepayment period starts after 5years and should be paid in a duration of 12months
- What is the Maximum amount that i can get under the PM kisan Credit card?
Under this PM kisan Credit card, one can get upto 3lakhs
- Do we need to submit any collateral for a PM kisan Credit card?
Up to 1.6lakhs, there is no need to submit any collateral. Beyond 1.6lakhs one has to submit required collateral documents.