Kisan Credit Cards are offered to farmers in India in order to enable them to access affordable credit for farmers. Reserve Bank of India (RBI), along with National Bank for Agriculture and Rural Development (NABARD) initiated the conception of Kisan Credit Cards (KCC) in 1998-99, in order to assist agriculturists to have easily accessible cash credit facilities. This card allows farmers to obtain timely and adequate credit without any hassles such as the repeated credit screening processes undertaken by banks. Some of the highlights of the Kisan Credit Card is that it provides flexibility in terms of repayment, which can be rescheduled in the event of unforeseen incidents like a bad crop season, with term extensions for a period of up to four years, and so on. Kisan credit card is valid for up to five years and is dependent on the annual renewals. The farmers can access the credit through card withdrawals or through bank withdrawal slips, and also have a passbook to record their transactions. The scheme is to meet the short-term credit requirements for cultivation of crops, Postharvest expenses, Produce Marketing loan, Consumption requirements of farmer household, Working capital for maintenance of farm assets, activities allied to agriculture, like dairy animals, inland e fishery and also working capital required for floriculture, horticulture etc.
Benefits of Kisan Credit Card:
- Flexible repayment options
- Hassle-free disbursement procedure
- Single credit facility/ term loan for all agricultural requirements
- Dependable and easily available credit which enables a decrease in the farmer’s interest burden
- Assists in the purchase of fertilizers, seeds, etc.
- Assists in availing cash discounts from merchants/ dealers
- Credit is available for a period of up to 3 years, without any seasonal appraisals
- Income from agricultural sources determines the maximum credit limit.
- There is no restriction on the cash withdrawals that can be made by the Kisan Credit Card holder, as long as it is within the credit limit set by the bank.
- Repayment can be made once the harvest season is over
- Lower interest rates.
- Margin, security and documentation terms and conditions are similar to that applicable to agricultural advance.
- Credit is made available for annual agricultural requirements and expenses.
- Minimal documentation and maximum flexibility offered for withdrawal of the required funds from the Bank.
- Funds can be withdrawn from any of the Bank’s branches, as per the sole discretion of the bank.
Eligibility for Kisan Credit Card:
- All farmers-individuals/Joint borrowers who are owner-cultivators.
- Tenant farmers, Oral lessees and Share Croppers etc.
- SHGs or Joint Liability Groups of farmers including tenant farmers, sharecroppers etc
Documents Required for Getting Kisan Credit Card:
- Duly filled in application form
- Identity proof- Voter ID card/PAN card/Passport/ Aadhaar card,/Driving License etc
- Address proof: Voter ID card/Passport/Aadhaar card/Driving license etc
Applications Procedure for Kisan Credit Card :
- You may contact nearest braches of the branch who engaged in agricultural advance
- even talk to the marketing officers visiting the village
- you may go to the nearest branch of nationalizing bank with all documents
- Please Call SBI’s 24X7 helpline number i.e. 1800 11 2211 (toll-free), 1800 425 3800 (toll-free) or 080-26599990. Toll-free numbers are accessible from all landlines and mobile phones in the country
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