The Kisan Credit Card (KCC) scheme was launched in 1998 to provide loans to farmers in India at lower interest rates. This scheme is a decisive step to meet the immediate financial needs of farmers and protect them from taking loans at high interest rates from non-institutional sources.
Through KCC, farmers can easily purchase fertilizers, urea, pesticides, and other sowing materials. Interest rates on loans taken under KCC are generally significantly lower than other market loans, reducing the financial burden on farmers.
KCC has several exceptional benefits, such as: it provides immediate access to funds for sowing crops, eliminates the worry of post-harvest expenses, and is also very useful when funds are needed for crop storage.
Special Features of the KCC Scheme and Benefits of Subsidy
The Kisan Credit Card Scheme is extremely popular among farmers due to its many attractive features. Under this scheme, farmers receive instant loan disbursement of up to ₹3 lakh through KCC. The most remarkable feature is that this loan limit is increased by 10% every year for the next 5 years. This means that your borrowing capacity increases with timely repayment.
Interest subsidy is a key attraction of this scheme. A special discount of 1.5% is provided by the government on interest. Furthermore, if farmers repay their loans ahead of schedule, they also benefit from additional interest rebates. These features make KCC much cheaper and more attractive than other loans in the market.
Eligibility and Required Documents for KCC
Kisan Credit Cards are a boon for anyone involved in agricultural activities. This scheme is primarily eligible for the following farmers: farmers who cultivate their own land, farmers who practice sharecropping, and farmers’ self-help groups or joint liability groups.
To apply, you will need the following documents: a completed application form, an Aadhaar card, address proof, an identity card, crop details, and passport-size photographs. With these documents, you can easily complete the application process.
How to Apply for a Kisan Credit Card
Applying for a KCC is now a simple process. You can apply online or directly in person at the bank:
First, visit the official website of the bank you wish to apply to for a KCC. For example, if you choose SBI or another bank, go to their portal and select the ‘Agriculture and Rural Banking’ section.
In the Agriculture Banking section, you will see the ‘Kisan Credit Card’ option. Here, you will also find the option to download the application form with complete information about the KCC. Download the form and fill in all the columns correctly.
After filling out the form, attach all the required documents. In the next step, you will need to visit the bank, meet with the concerned officer, and submit this completed form.
Once your application is approved, you will start receiving loans at a low interest rate, which will prove to be a powerful help for your farming.