Agriculture is a very difficult profession. You have to invest a lot of capital and resources and wait until the season is favourable. Even then, a lot can happen — it would rain more or less, leading to droughts and floods, a new bacterium/virus could emerge and destroy the crop etc. That is why Modi Sarkar launched the Kisan Credit Card scheme to help Indian farmers stay away from money lenders in the unorganised sector who charge high interest rates. 

What Is Kisan Credit Scheme?

The KCC scheme was launched to ensure farmers receive adequate and timely credit for their agricultural activities. On the other hand, farmers avail of credit at a highly subsidised rate of interest of 4% per annum, benefiting from an interest subsidy of 2% from the Government of India and an immediate repayment incentive (IRI) of 3%. 

KCC scheme was broadened to Farmers’ Investment Credit needs, i.e., Non/Agricultural activities, and modified in 2012 by a working group under the Chairmanship of Shri T. M. Bhasin, CMD, Indian Bank, to simplify the scheme and facilitate the issue of electronic Kisan Credit Cards. 

This scheme gives the banks detailed instructions on implementing the KCC program. KCC loans include post-harvest expenses, other consumption requirements, and loans for investments in agriculture and allied activities. 

This govt scheme  is run through commercial, small finance banks and cooperatives. The government implemented a Credit Card scheme that streamlined the process for farmers to secure timely and sufficient credit. 

Benefits Of The Kisan Credit Card Scheme

Here are the benefits of the Kisan Credit Card Scheme: 

• The farmers will also be able to generate their livelihood and bear any additional expenses post-harvest. 

• Up to 300,000 rupees can be offered in production loans, Rural farmers will get loans at low interest rates.

• The KCC scheme allows farmers to open bank accounts with reasonable interest charges.

• With the KCC scheme, borrowers have the power to choose a more convenient disbursement procedure and loans on flexible terms that suit their needs.

• For this programme there is no need for collateral for loans up to Rs. 1.6 lakhs, providing a sense of relief and security

• The limit will be set according to farmers' land holding, crop pattern, and liquidity.

• If any unforeseen occurrence like natural phenomena results in crop injury, rescheduling loans and incentives will be permitted.

• If you have a good credit score, the card limit would correspondingly increase to cover the rising costs, incidental expenses or changes in your planting patterns.

Eligibility To Apply For This Government Scheme For Farmers 

Following are the Eligibility Criteria for the Kisan credit card Scheme:

• Fishermen who own a registered boat or any other type of fishing vessel, and those who have the necessary licence or permissions for fishing in the rivers or the sea.

• Farmers involved in the production of crops or activities such as animal husbandry.

• Sharecroppers,  tenant farmers, self-help groups  (SHGs) or joint liability groups  (JLG).

• Any farmer who is also an owner and cultivator will get this loan.

How To Apply For This Sarkari Yojana?

• To apply for the Kisan Credit Card, simply visit your bank’s website, and click on the Kisan Credit Card option. 

• Fill up the form. 

• After you’ve finished entering all the required info, click the confirmation button.

• Once the form is completed, the bank will contact you within 2-3 days and make a personal visit if necessary for further interviews.  

Conclusion

The  Kisan Credit Card scheme offers the necessary credit to farmers in a simplified way, providing them with timely and affordable credit for their farming requirements. 

To learn more about this govt scheme click here,