Kisan Credit Card Loan Details

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With the introduction of Kisan Credit Card, farmers can get loan to meet their timely agricultural requirements in hassle-free manner. The Kisan Credit Card Scheme was implemented in 1998 by the Ministry of Finance, Government of India to save and support farmers by providing financial assistance in low interest rate. This scheme prevents farmers from falling prey to money lenders who lend money at high interest rates. The repayment schedule for the loan is based on the crop harvesting period thereby reduces loan burden of farmers.

Objectives of Kisan Credit Card Scheme:

Under this scheme, farmers are provided adequate credit support to meet their agricultural needs through banks. Some of the objectives of this scheme are,

• To face the short time credit needs for agriculture
• To meet the expenses after harvest
• To offer Goods marketing loan
• To provide Net Working Capital (NWC) for maintenance of farm assets and agricultural activities like Inland fishery, Dairy animals, etc.
• To offer farmer household expenditure needs
• To provide investment credit needs for cultivation and other activities such as dairy animals, sprayers, pump sets, etc.,

Benefits of Kisan Credit Card Scheme for Farmers:

Kisan Credit Card is the best scheme for farmers because it has the following key features.

• Interest rate for the loan is as low as 2%
• Card holders can take upto 3 lakh of loan amount
• Farmers will get high interest rate for their savings in Kisan Credit Card Account
• Farmers will be provided Crop Insurance Scheme
• Along with Kisan Credit Card, a debit card cum ATM card will be issued to farmers
• In the event of crop damage due to natural crisis, rescheduling for loan repayment will be available.
• With the concerned bank's consent, card holders can increase their credit limit on condition that they have to maintain good credit card usage record.
• Insurance coverage of Rs. 50,000 will be provided in the case of Total Permanent Disability and Death and Rs. 25,000 for other risks.
• For loans up to 1.60 lakh, collateral is not required.

Kisan Credit Card Scheme - Interest Rate and Other Charges:

As per the RBI guidelines, the credit limit and interest rate for Kisan Credit Card will be determined by the concerned issuing banks. However, the average interest rate assigned will range from 9 to 14% per annum.

According to the card holders' repayment and credit record, the government will also offer some schemes and subsidies to the farmers.

Other charges and fees like land mortgage fee, insurance premium, processing fee, etc. will also be charged by the concerned issuing banks.

Kisan Credit Card Scheme - Insurance Coverage:

Under the Kisan Credit Card Scheme, farmers who meet the eligibility criteria are provided with insurance coverage option by the bank and insurance provider. This scheme offers personal accident insurance coverage through which farmers will get Rs. 50,000 in the case of death and Rs. 25,000 for disability. The bank and the insurance provider will decide the premium amount.

Eligibility Criteria for Kisan Credit Card Scheme:

Individuals mentioned below are eligible for Kisan Credit Card Scheme.

• All farmers including individuals or joint borrowers who are owner cultivators.
• Oral Lessees, Share Croppers and Tenant Farmers
• Self Help Groups and Joint Liability Group of Borrowers which includes Share Croppers, Tenant Farmers, etc.,

Under Fisheries and Animal Husbandry, the eligible beneficiaries for this scheme are,

Poultry: Individual or joint borrowers, JLG or SHG which includes tenant farmer of Goats, Pigs, Sheep, Rabbits, Birds, Poultry with leased/ rented/ owned sheds.

Dairy: Individual or joint borrowers, JLG or SHG which includes tenant farmer who possess, lease, and rent sheds.

Inland Fisheries and Aquaculture: Fishers, Fish Farmers, JLGs, SHGs as well as women groups. Beneficiaries should possess or lease any fisheries related activities like leasing/ owning a pond, tank, open water body or hatchery with others.

Marine Fisheries: Beneficiary should possess a registered fishing vessel or boat with proper permission or licence for fishing in the sea or estuaries.

Documents Needed to Apply for Kisan Credit Card:

Applicants who want to apply for Kisan Credit Card should possess the following documents.

• Duly filled application form
• Passport size photograph
• Identity Proof (any one): Aadhaar card, PAN card, Driving License, Passport, Voter ID
• Address Proof (any one): Aadhaar card, PAN card, Driving License, Passport, Voter ID
• Land documents

How to Apply for Kisan Credit Card in Online?

You can apply for Kisan Credit Card in online by following the simple steps given below.

• Visit your bank's online banking portal and look for 'Agri/Rural' option
• Then click 'Kisan Credit Card' and tap the 'Apply' button
• You will be taken to the online application page
• Enter all the required details and click 'Submit'
• Once you have successfully submitted the application, you will receive a system generated application reference number.
• Note down the reference number for further queries.

If you are eligible for this scheme, the bank will call and inform you about the application process. The bank will inform you the list of documents required to be submitted and will book an appointment for submission of documents. After successful verification of documents, the Kisan Credit Card will be sent to your bank registered address.

Banks offering Kisan Credit Card:

Kisan Credit Card scheme is offered only in few banks. Some of the public sector banks which offer Kisan Credit Card Scheme are,

• NPCI - National Payments Corporation of India
• NABARD - National Bank for Agriculture and Rural Development
• Cooperative banks
• IDBI - Industrial Development Bank of India
• SBI - State Bank of India