The Kisan Credit Card

The Kisan Credit Card (KCC) scheme is a credit scheme of Indian banks for farmers that permits farmers to access timely and adequate credit for agriculture and allied activities like crop cultivation, post-harvest expenses, and maintaining farm assets. The Kisan Credit Card scheme is to provide simplified access to credit and lessen the hassle of compliance for farmers.

Key features and advantages:

• Timely credit: KCC gives short-term and long-term credit to farmers for a range of activities including crop cultivation, post-harvest expenses and working capital for farm assets.
• Streamlined procedures: KCC provides streamlined procedures for accessing credit and reduces the hassle for farmers to get access to loans.
• Collateral-free loans: For small amounts of loans (up to ₹1.00 lakh or as described in writing by individual banks), banks can choose to waive security/collateral requirements in line with RBI guidelines.
• Insurance coverage: KCC holders can opt to have personal accident insurance coverage to provide some financial support if an accident occurs which incapacitates or results in death.
• RuPay Kisan Card: Many banks will provide RuPay Kisan cards, which are essentially debit cards attached to KCC accounts. These cards allow farmers to withdraw cash and purchase products from merchant outlets.
• Subsidised Interests: KCC loans are made by the Department of Fisheries at subsidised interest rates, which allows farmers who pay on time to receive a notice of prompt payment as well.

Eligibility:

• Farmers – individual/joint borrowers who are owner cultivators;
• Tenant farmers, oral lessees & share croppers;
• Self Help Groups (SHGs) or Joint Liability Groups (JLGs) of farmers including tenant farmers, share croppers etc

Objective / Purpose

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

1. To meet the short term credit requirements for the cultivation of crops;
2. Post-harvest expenses;
3. Produce marketing loan;
4. Consumption requirements of farmer household;
5. Working capital for maintenance of farm assets and activities allied to agriculture;
6. Investment credit requirement for agriculture and allied activities