KCC Loan: Farmers often face situations where they urgently need funds for farming expenses. The process for obtaining a regular loan is often complex and time-consuming, causing difficulties for farmers. To address this problem and provide farmers with accessible and affordable credit, the government launched the Kisan Credit Card Scheme. Through this scheme, farmers receive loans up to ₹3 lakh at a low interest rate, allowing them to invest in agricultural activities such as seeds, fertilizers, irrigation, animal husbandry, and fisheries without financial stress.
Loan facility at affordable interest rates
Under the Kisan Credit Card, farmers are provided loans for a maximum period of five years. The interest rate is only four percent, allowing farmers to meet their needs without a heavy financial burden. Furthermore, short-term loans up to ₹160,000 require no collateral, making them easily accessible to small and marginal farmers.
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What Happens to a KCC Loan in Case of Accident
A major concern for farmers is the burden on their families in the event of an unexpected accident or death while borrowing. The KCC scheme addresses this issue. Accident insurance coverage is also provided to farmers along with the credit card. In the event of a farmer’s death or permanent or temporary disability, the loan repayment process begins through an insurance claim. This way, the family is not suddenly burdened with financial responsibility.
Loan Repayment and Settlement Rules
In the event of the death of a Kisan Credit Card holder, the bank or financial institution contacts the farmer’s family and informs them about the status of the loan. In many cases, the loan is settled with the consent of the family and the bank. If a farmer has placed collateral and the claim does not fully cover the amount, the process of auctioning the collateral can also be adopted under the rules. However, banks generally offer compromise and relief options based on the family’s circumstances.
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How to Receive an Insurance Claim
Under the scheme, farmers can receive insurance up to ₹50,000 in the event of death and ₹25,000 to ₹50,000 in the event of disability due to a serious accident. The rules are explained in detail to farmers at the time of application. Farmers can obtain a KCC by submitting their Aadhaar card, a copy of their passbook, a passport-size photo, and land documents. For more information or to download the form, visit pmkisan.gov.in or contact the bank branch directly.