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What Is Kisan Credit Card (KCC)

What Is Kisan Credit Card (KCC)

The Kisan Credit Card (KCC) is a type of credit card provided by banks in India to farmers. The card is designed to provide farmers with easy access to credit for their agricultural needs, such as buying seeds, fertilizers, and other inputs. The credit limit is decided based on the value of the collateral provided by the farmer.

It is issued by banks and the limit is set by NABARD as per the need and repayment capacity of the farmer. The card can be used to purchase goods and services from authorized dealers and merchants, and can also be used to withdraw cash from ATMs. It is mainly used to help farmers purchase inputs for their farms, and to help them manage their cash flow.

The Kisan Credit Card (KCC) is primarily used by farmers in India to access credit for their agricultural needs, such as buying seeds, fertilizers, and other inputs. The card can be used to purchase goods and services from authorized dealers and merchants, and can also be used to withdraw cash from ATMs. It is intended to help farmers purchase inputs for their farms, and to help them manage their cash flow. The credit limit on the card is based on the value of the collateral provided by the farmer, and can be used for a variety of purposes including but not limited to:

  • Purchase of agricultural inputs such as seeds, fertilizers, pesticides, etc.
  • Production credit for activities related to agriculture and allied activities
  • Investment credit for agriculture and allied activities
  • Consumption needs of the farmer and his family
  • Ancillary activities directly linked to agriculture

The card can also be used to access other services such as crop insurance, pension schemes, and other government schemes. Overall, the KCC is intended to make it easier for farmers to access credit and manage their financial needs, which will ultimately help them to improve their livelihoods.

The eligibility criteria for obtaining a Kisan Credit Card (KCC) in India may vary slightly depending on the issuing bank, but generally, the following criteria are used:

  • The applicant must be a farmer, and must have a valid proof of being a farmer such as a landholding certificate.
  • The applicant must have a minimum landholding of at least 0.01 hectare (around 0.02 acre) of cultivable land.
  • The applicant must have a good credit history, and should not be a defaulter in any other bank.
  • The applicant must have a valid identity proof and address proof.
  • The applicant should have a minimum age of 18 years.

Additionally, some banks may have specific requirements such as minimum income, minimum education level, or other factors that must be met in order to be eligible for a KCC. It’s always good to check with the bank or financial institution where you are applying for the KCC.

It’s also important to note that to continue the use of KCC, the card holder should maintain the repayment capacity and the collateral as per the bank’s terms and conditions.

What are benefits of KCC loan?

The Kisan Credit Card (KCC) loan provides several benefits for farmers in India:

  1. Easy access to credit: The KCC makes it easier for farmers to access credit for their agricultural needs, such as buying seeds, fertilizers, and other inputs.
  2. Competitive Interest Rates: The interest rate on KCC is competitive and generally lower than other types of loans, which makes it more affordable for farmers.
  3. Flexible Repayment: The repayment tenure of KCC is flexible, which helps farmers manage their cash flow.
  4. Collateral-free loan: In many cases, the KCC loan is offered without any collateral, which makes it accessible to farmers who may not have assets to pledge as collateral.
  5. Multiple uses: The KCC loan can be used for a variety of purposes including buying agricultural inputs, production credit, investment credit, consumption needs, and ancillary activities directly linked to agriculture.
  6. Insurance coverage: Many banks offer crop insurance coverage to KCC holders, which provides an additional layer of protection for farmers.
  7. Government schemes: The KCC loan can also be used to access other government schemes such as Pension schemes, and other schemes for the farmers.
  8. Easy application process: The application process for a KCC loan is relatively simple, and many banks have started to offer online application process.

Overall, the KCC loan provides farmers with an affordable and accessible way to finance their agricultural needs, which can help improve their livelihoods and increase productivity.

PM Kisan is a government scheme in India that provides financial assistance to small and marginal farmers. The Kisan Credit Card (KCC) is a component of the PM Kisan scheme, which provides farmers with easy access to credit for their agricultural needs. Under PM Kisan scheme, farmers can apply for KCC in any branch of the bank where they have a savings account. The credit limit is decided based on the value of the collateral provided by the farmer and the repayment capacity as per the norms of NABARD.

The scheme aims to provide financial assistance to farmers for the purchase of agricultural inputs such as seeds, fertilizers, pesticides, etc. and for meeting their consumption needs. The scheme also aims to help farmers manage their cash flow and improve their livelihoods.

Yes, you can withdraw money from your Kisan Credit Card (KCC) account. The card can be used to withdraw cash from ATMs, and can also be used to purchase goods and services from authorized dealers and merchants. However, there may be some restrictions on the amount of cash you can withdraw and the number of transactions you can make, depending on the terms and conditions of your KCC account and the issuing bank.

It’s always good to check with the bank or financial institution where you have the KCC account for their specific withdrawal policies and fees. Keep in mind that you should have enough balance in your account and the withdrawal will be subject to the credit limit set for the card. Also, the bank may impose some charges for cash withdrawals, so it’s always good to keep an eye on that.

A Kisan Credit Card (KCC) is a credit card for farmers in India that is issued by banks. The card is meant to provide farmers with easy access to credit for agricultural and allied activities. Some frequently asked questions about Kisan Credit Cards include:

Q. How can I apply for a Kisan Credit Card?

Ans. You can apply for a Kisan Credit Card at your nearest bank branch that offers the card. You will need to provide proof of identity, proof of residence, and proof of income, as well as other documents that may be required by the bank.

Q. What are the benefits of a Kisan Credit Card?

Ans. The benefits of a Kisan Credit Card include easy access to credit, lower interest rates, and the ability to purchase agricultural inputs on credit.

Q. What are the eligibility criteria for a Kisan Credit Card?

Ans. Eligibility criteria for a Kisan Credit Card may vary depending on the bank, but generally, farmers who own or operate agricultural land are eligible to apply.

Q. What is the limit on a Kisan Credit Card?

Ans. The limit on a Kisan Credit Card may vary depending on the bank and the applicant’s income and creditworthiness.

Q. What are the documents required for Kisan Credit Card?

Ans.  The documents required for a Kisan Credit Card may include proof of identity, proof of residence, proof of income, and proof of ownership of agricultural land.

Q. How can I repay my Kisan Credit Card debt?

Ans. You can repay your Kisan Credit Card debt through cash, cheque or electronic transfer to the bank. You can also set up an auto-debit facility for repayment.

Q. Can I use my Kisan Credit Card for non-agricultural purposes?

Ans. Some banks may allow you to use your Kisan Credit Card for non-agricultural purposes, but this will depend on the bank’s policies and the terms and conditions of the card.

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