Kisan Credit Card (KCC) is an important financial facility for farmers, which provides loans at low interest rates for farming. Recently, the central government has increased the loan limit under KCC from three lakhs to five lakh rupees. The objective of this scheme is to provide easy and cheap loans to farmers, so that they can meet the farming related requirements without any financial constraints.

If you want to get a Kisan Credit Card and want information about eligibility, application process and documents for it, then this article is for you.

What is Kisan Credit Card?

Kisan Credit Card Scheme was launched by the government in 1998. Under this scheme, farmers get agricultural loans at low interest rates, so that they can get financial assistance for seeds, fertilizers, pesticides, equipment, animal husbandry, horticulture, and fisheries.

Main objective of KCC scheme

• To provide easy and cheap loan facility to the farmers.
• To provide financial assistance for farming and other related activities.
• Providing loans directly to the farmers from the bank, saving them from middlemen.

Who can avail the benefit of Kisan Credit Card?

The following people can avail the benefits of Kisan Credit Card Scheme:

• All the farmers who do farming.
• Farmers engaged in fisheries, animal husbandry and dairy farming.
• Sharecroppers and tenant farmers.
• Farmers involved in horticulture, poultry farming and beekeeping.

Documents required for Kisan Credit Card

The following documents are required to get KCC made:

How to apply for Kisan Credit Card?

There are two ways to apply for Kisan Credit Card:

Online Application Process

1. First of all go to the official website of your bank.
2. Click on the option “Kisan Credit Card (KCC) Application” .
3. Fill the online form and upload the required documents.
4. After submitting the application, you will be contacted by the bank.

Offline Application Process

1. Farmers can apply by visiting the nearest government or private bank, rural bank, or cooperative society bank .
2. Fill the application form and attach the required documents.
3.  The bank officials will proceed with the process after checking the documents.
4. If all the documents are found correct, the bank issues KCC to the farmer .

Benefits available on Kisan Credit Card

Farmers get the following benefits under Kisan Credit Card:

Loan limit increased: Earlier, under KCC, loan up to ₹3 lakh was available, which has been increased to ₹5 lakh.

 Low interest rate: Loans are made available to farmers at an interest rate of just 4% per annum.

Interest waiver by the government

• The government gives a subsidy of 2% on the total interest.
• Farmers who repay the loan on time get an additional 3% discount. Easy process of repaying the loan: Farmers have to pay interest twice a year. Benefit of crop insurance scheme: KCC holders get the benefit of Pradhan Mantri Fasal Bima Yojana.
   

Interest Rates and Loan Terms on Kisan Credit Card

KCC loan tenure and interest rate information:

The interest rate reduces further if the loan is repaid on time.

How to get loan from KCC?

• After completion of the application process the bank checks your eligibility.
• After issuance of KCC, farmers can withdraw their loan amount from the bank.
• Farmers can use this loan for farming, fertilizers, seeds, equipment, animal husbandry and other agricultural purposes.
• After repaying the loan amount, farmers can avail this facility again.

Other important things related to KCC scheme

Farmers who pay on time get more benefits. The loan received from KCC cannot be used for any purpose other than farming. The loan amount is decided based on the condition of the agricultural land and needs of the farmer.

Kisan Credit Card Scheme is very beneficial for farmers, because under this, a loan of up to Rs 5 lakh can be availed at a low interest rate. The application process is very easy, and farmers can apply online or by visiting the bank. An additional discount of 3% is also available on the interest rate on repaying the loan on time. The government wants to benefit more and more farmers by promoting this scheme.

If you are a farmer and want to apply for Kisan Credit Card, then apply soon by visiting the nearest bank or official website and avail the benefits of this scheme.