The Kisan Credit Card facility is provided by the Ministry of Agriculture and Farmers Welfare, Government of India, to promote farming, fisheries, and animal husbandry, and to provide financial support to farmers. Often, due to a lack of funds, farmers are unable to sow seeds on time. As a result, crop production is affected, and sometimes, farmers’ fields remain empty for the entire season. This causes difficulties for the farmer’s family in managing daily life.
Kisan Credit Card Benefits for Farmers, Fish Farmers, and Animal Husbandry Workers
The Ministry of Agriculture and Farmers Welfare, Government of India, offers the Kisan Credit Card (KCC) to support farmers, fish farmers, and animal husbandry workers. This scheme aims to provide financial help for farming, fisheries, and animal husbandry work. Many farmers face challenges in timely sowing crops due to a lack of funds, which affects crop production and can leave fields empty for the season, causing hardship for the family.
Increased KCC Loan Limit
In the Union Budget, Union Finance Minister Nirmala Sitharaman announced an increase in the Kisan Credit Card limit from Rs 3 lakh to Rs 5 lakh. Nivas Kumar, Koderma District Lead Manager, explained that KCC benefits are available to farmers, fish farmers, and animal husbandry workers. Through KCC, banks offer loans at low interest rates.
Loan Up to Rs 2 Lakh Without Security
For agricultural work, farmers can get loans up to Rs 1 lakh by applying with a declaration form verified by the head and land-related documents. For loans above Rs 1 lakh, a land positioning certificate from the zonal office is required. According to the Reserve Bank of India guidelines, loans up to Rs 2 lakh do not require any security.
Goat and Cow Rearers Will Also Get Benefits
Fish farmers can take KCC loans for cages, spawn, seeds, and other materials required for fish farming. Similarly, cattle rearers can avail of loans under KCC for goat and cow rearing. Applications can be submitted through the district-level department office or directly at the bank.
- A person rearing four goats and one buck can get a KCC loan of Rs 30,000.
- A person rearing two cows can get a KCC loan of Rs 59,000.
- Those rearing 10 cows can get a loan of up to Rs 1.5 lakh, without requiring any security.
How to Apply & Interest Rate Benefits
To avail of the benefits of KCC, any account holder can apply at the bank by submitting a photocopy of their Aadhaar card, PAN card, and land-related documents. If there are no errors in the application, the loan is approved quickly.
- The interest rate on KCC loans is 7% per year.
- If the borrower repays the loan on time, they receive a 3% subsidy from the central government and a 4% subsidy from the state government, making the interest zero.
- Once the KCC loan is repaid on time, the bank provides the next loan easily without complications.