Several schemes are being implemented in the country to double the income of farmers. These include schemes like the PM Kisan Samman Nidhi (PM Kisan Samman Nidhi) and the Kisan Credit Card (KCC). The KCC scheme was launched to protect farmers from the clutches of moneylenders and provide them with loans at affordable rates. The most significant feature of this scheme is that farmers can now easily obtain loans up to ₹5 lakh, compared to the previous limit of ₹3 lakh.
The Uttar Pradesh government is running a massive campaign to ensure that needy farmers receive the benefits of the KCC scheme promptly. The state government aims to connect every needy farmer with the credit card scheme so that more farmers can access loans using credit cards to meet their farming needs. Under this scheme, farmers can avail loans for various purposes, including short-term farming, post-harvest expenses, household needs, animal husbandry, and farm repairs.
How much loan is available with a Kisan Credit Card, and what is the interest rate
Short-term loans are offered to farmers through the Kisan Credit Card. Under this scheme, farmers can avail loans up to ₹5 lakh. This includes loans up to ₹3 lakh for crops and up to ₹2 lakh for agricultural purposes.
Excellent interest rate benefits
The actual interest rate on the loan is 7%. However, the government offers significant relief.
The government provides a 2% interest subsidy.
A 3% bonus is also available for timely repayment.
Thus, farmers effectively receive loans at an annual interest rate of only 4%.
The government claims that farmers pay only 4% interest on the loan, making it one of the cheapest agricultural loans available in the country.
Who can apply for a Kisan Credit Card
Farmers from various sections of society can benefit from the KCC scheme:
Small and marginal farmers are fully eligible.
Landless agricultural laborers can also apply.
People involved in animal husbandry, fisheries, sericulture, horticulture, and dairy can also benefit from this scheme.
Self-help groups (SHGs) and joint liability groups (JLGs) are also considered eligible.
Documents Required for a Kisan Credit Card
When applying for this scheme, you will need the following key documents for proof of identity and address:
Voter ID, PAN card, or Aadhaar card for proof of identity.
These same documents may also be required for proof of address.
In addition, land documents (as proof of farming) and passport-size photographs will also be required.
A simple way to apply online
You can apply for KCC online from the comfort of your home, saving you time:
First, visit the official website of your preferred bank.
On the home page, you will see the Kisan Credit Card option.
After clicking on Kisan Credit Card, the option to ‘Apply’ or ‘Apply Now’ will appear.
Click ‘Apply’ and a new page will open.
Enter all your personal information and farming-related details there and click Submit.
After submitting, you will see an application reference number.
If you are eligible for this scheme, the bank will contact you within 5 days and complete the further process.