Kisan Credit Card (KCC) Scheme

Kisan Credit Card (KCC) scheme is a credit scheme launched in August 1998 to provide loans to farmers for agricultural needs. Under this scheme, all farmers will be issued a smart card-cum-debit card in addition to the Kisan Credit Card.

Objectives of the Kisan Credit Card (KCC) Scheme

The Kisan Credit Card scheme aims at providing adequate and timely credit support from the banking system under a single window with flexible and simplified procedures to the farmers for their cultivation and other needs as indicated below:

• To meet the short term credit requirements for the cultivation of crops;

• Post-harvest expenses;

• Produce marketing loan;

• Consumption requirements of farmer household;

• Working capital for maintenance of farm assets and activities allied to agriculture;

• Investment credit requirement for agriculture and allied activities.

Eligibility Criteria of Kisan Credit Card (KCC) Scheme

• The scheme is for farmers who are individual or joint borrowers ;

• They can also be tenant farmers, oral lessees & sharecroppers;

• It even covers Self Help Groups (SHGs) or Joint Liability Groups (JLGs) of farmers including tenant farmers, sharecroppers etc.

• Eligible beneficiaries under this scheme under fisheries and animal husbandry are: 

  • Inland Fisheries and Aquaculture: Fish farmers, fishers, SHGs, JLGs, and women groups. As a beneficiary, you must own or lease any activity related to fisheries. This includes owning or leasing a pond, an open water body, a tank, or a hatchery among others.

  • Marine Fisheries: You own a registered boat or any other type of fishing vessel and you have the necessary license or permissions for fishing in estuaries or the sea.

  • Poultry: Individual farmers or joint borrowers, SHGs, JLGs, and tenant farmers of sheep, rabbits, goats, pigs, birds, poultry, and have sheds they have owned, rented, or leased.

  • Dairy: Farmers, dairy farmers, SHGs, JLGs, and tenant farmers who own lease, or rent sheds.

Documents Required for Kisan Credit Card (KCC) Scheme

The farmer will be required to furnish certain documents to get the card. The list of documents has been given below. 

• Duly filled-in and signed-in application form.

• Copy of identity proof such as Aadhaar card, PAN card, Voter ID, driving license, etc.

• Copy of address proof document such as Aadhaar card, PAN card, Voter ID, driving license. The proof should have the applicant’s current address to become valid.

• Land documents.

• A passport size photograph of the applicant.

• Other documents such as security PDC as requested by the issuing bank.

Quantum of Loan

• Quantum of loan for 1st year will be assessed based on Cost of cultivation, post-harvest expenses and farm maintenance cost

• For subsequent 5-year loan will be sanctioned based on the increase in the scale of finance

How to apply online for Kisan Credit Card (KCC) Scheme?

• Visit the website of the bank from where you intend to take a loan. Application links for a few of the banks are given below.

• Choose ‘Kisan Credit Card’ from the available list of credit cards.

• Click on the ‘Apply’ button.

• Then you will be redirected to the online application page.

• Now fill required fields with accurate details before clicking on ‘Submit’.

• Once the application is submitted, the system will generate an application reference number. This application reference number can be used to track the

• Then, the bank will process your application and you will get a call in 3-4 working days and they will let you know further steps for the application process. You will be informed about the documents required to process the application and an appointment will be scheduled for document collection.

• Following the successful verification of the documents submitted, the bank will send the credit card to your registered address.

Collateral Security

• Collateral security is waived for KCC limits up to Rs. 1 lac.

• Sanctioned KCC limit will be considered for fixing collateral security requirement

Rate of Interest

• Simple interest of  @7% p.a (may vary) will be charged for one year or up to the repayment due date, whichever is earlier.

• In case of non-repayment within the due dates, interest is applied at the card rate

• Beyond the due date, interest will be compounded half-yearly

Repayment

•  The repayment period may be fixed as per the anticipated harvesting and marketing period for the crops for which a loan has been granted.

Disbursement

The short term component of the KCC limit is like a revolving cash credit facility. There should be no restriction on the number of debits and credits. The drawing limit for the current season/year could be allowed to be drawn using any of the following delivery channels.

• operation through the branch;

• operation using cheque facility;

• withdrawal through ATM /debit cards

• operation through Business Correspondents and ‘banking outlet/part-time banking outlet’3

• operation through PoS available in Sugar Mills/Contract farming companies, etc., especially for tie-up advances;

• operations through PoS available with input dealers;

• mobile-based transfer transactions at agricultural input dealers and mandies.