Kisan Credit Card (KCC) scheme helps farmers in purchasing agriculture products and services on credit at any time. Recently, the government introduced Interest Subvention Scheme (ISS) to ensure that the farmers pay a minimal interest rate to the bank while applying for this credit card.
Now renamed as Modified Interest Subvention Scheme (MISS), the scheme will provide an interest subvention of 1.5 percent per annum on short-term agriculture loans up to Rs 3 lakh.
Here are the key things to know about the Kisan Credit Card (KCC) scheme:
What is the KCC scheme aimed at?
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Kisan Credit Card scheme aims at providing adequate and timely credit support from the banking system under a single window with a flexible and simplified procedure to the farmers for their cultivation and other needs, according to the RBI statement.
Who can apply for it?
Farmers—individual/joint borrowers who are owner cultivators, tenant farmers, oral lessees and share croppers; self-help groups (SHGs) or Joint Liability Groups (JLGs) of farmers including tenant farmers, share croppers etc can apply for KCC.
The borrower should be a minimum of 18 years of age and a maximum of 75 years. In the case of senior citizens, it is compulsory to have a co-borrower who is a legal heir.
Which banks offer KCC?
What are the interest rate and other charges on KCC?
The interest rate on the KCC differs from one bank to another along with its credit limit. Other fees and charges such as processing fees, insurance premiums etc. are set at the discretion of the issuing bank.
| Banks offering Kisan Credit Card | Interest Rate |
| SBI Kisan Credit Card | Min. 7% p.a. |
| PNB Kisan Credit Card | Min. 7% p.a. |
| HDFC Bank Kisan Credit Card | Min. 9% p.a. |
| Axis Bank Kisan Credit Card | 8.85% p.a. | interest subvention provided |
| Mahabank Kisan Credit Card | Min. 7% p.a. |
| Indian Overseas Bank Kisan Credit Card | 7% p.a. | interest subvention provided |
| UCO Bank Kisan Credit Card | 7% p.a. | interest subvention provided |
(Source: Paisabazaar)
What is the repayment period?
The repayment period may be fixed by banks as per the anticipated harvesting and marketing period for the crops for which the loan has been granted.
Normally, the term loan component is repayable within a period of 5 years depending on the type of activity/investment as per the existing guidelines applicable for investment credit, as per RBI norms.
Financing banks may, at their discretion, provide a longer repayment period for term loans depending on the type of investment.
Is there any insurance provided with KCC?
Eligible crops may be covered under 'Pradhan Mantri Fasal Bima Yojna' on premium payment. Borrowers should also opt for personal accident insurance and health insurance (wherever applicable).
What are the documents required to apply for KCC?
ID proof such as driving license/Aadhaar card/voter identity card, passport, etc is required. Also, proof of landholding duly certified by the revenue authorities, cropping pattern (crops grown) with acreage, security documents for loan limit, passport size photographs must be submitted.
How can you apply for KCC online and offline?
Those looking to apply for KCC cards can apply online on the website of any bank that offers this facility. There should be a 'Kisan Credit Card' section under 'Cards'. Applicants are required to fill out the PM Kisan Credit Card online application form with the required details and submit.
Those looking to apply it offline, can download the application form, visit the nearest bank branch that offers the 'Kisan Credit Card' scheme and submit the filled up form.
