Kisan Credit Card Scheme: The government's objective behind launching the Kisan Credit Card (KCC) scheme is to provide timely financial assistance to farmers for farming and related work. This scheme provides a streamlined credit support system through banks. So that farmers can get timely and adequate financial assistance.

The KCC scheme makes the loan process easier so that farmers do not face any problems in getting money for various farming-related works. Let us know more about the Kisan Credit Card Scheme.

No fee for loans up to Rs 3 lakh

According to an advisory issued by the government, banks have been directed to waive processing fees, documentation, inspection, and other service charges for KCC loans up to Rs 3 lakh. The aim of this move of the government is to reduce the financial burden on small and marginal farmers. However, for loans above Rs 3 lakh, charges such as processing fees and inspection costs are determined by individual banks based on their board-approved policies.

Responding to a question on the interest rate charged on Kisan Credit Cards on a monthly/half-yearly/yearly basis, Minister of State in the Finance Ministry Pankaj Chaudhary said, “Loans up to Rs 3 lakh under the KCC scheme are available at a concessional interest rate of 7% per annum. In addition, farmers who repay their loans promptly can avail an interest rebate of 3%, effectively reducing the interest rate to 4% per annum. For loans above Rs 3 lakh, interest rates are determined by the board-approved policies of the respective bank.”

Acceptance of digital land records

The government has confirmed that digitally signed online land records are valid for KCC applications. However, due to incomplete digitization of land records in many states, banks often require legal opinions to confirm the authenticity of these documents. For example, Baroda Rajasthan Regional Rural Bank accepts certificates from the soldiers to verify land ownership and outstanding government dues.

How to apply for a Kisan credit card online?

Step 1- Visit the website of the bank in which you want to apply for the Kisan Credit Card (KCC) scheme.

Step 2 - Select the Kisan Credit Card option from the list of options available on the bank's website.

Step 3 - Now click on the option of 'Apply', after which an application page will open in front of you.

Step 4 - Fill in all the required details in the form and then click on 'Submit'.

After submitting, you will be sent an application reference number. If you are eligible for this scheme, the bank will contact you within 3-4 days for further processing.

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