New Delhi: The central and state governments are running specific schemes aimed at the economic advancement of farmers schemes from which a large number of farmers are already benefiting. Did you know that under the Kisan Credit Card (KCC) scheme, farmers can avail loans at low interest rates? By securing these affordable loans, farmers can attend to pending agricultural tasks.
If you do not yet have a Kisan Credit Card, do not delay. You can visit a nearby bank, contact the manager, and get one issued. You can find essential details about this central government scheme below; reading this will clear up any confusion you might have.
What is the Kisan Credit Card?
The central government’s Kisan Credit Card scheme is highly significant. Under this scheme, banks provide loans to farmers based on their requirements, with a pre-set credit limit. Farmers can easily withdraw funds from this limit whenever needed. The funds can be used for expenses such as seeds, fertilisers, pesticides, and other farming-related costs.
The Kisan Credit Card also facilitates easy access to working capital for activities like animal husbandry, dairy farming, and fisheries. Under the KCC scheme, the concessional interest rate on short-term agricultural loans is 7%.
If farmers repay the loan on time, they receive a 3% rebate. Consequently, the effective interest rate can come down to 4% for timely repayment. This benefit is granted based on the eligible loan amount and applicable regulations.
Understand the complete process for the Kisan Credit Card
First, visit the branch of your preferred bank.
Fill out the Kisan Credit Card application form.
Submit the necessary documents, including proof of identity, proof of address, and documents related to your farming activities.
Provide details regarding your land, crops, and farming operations.
The bank will then verify your documents and the information provided about your farming.
The bank will determine the credit limit for your card based on your requirements.
Once approved, the KCC will be issued to you.
You can then utilise the funds as needed, within the set credit limit. Additionally, ensure timely repayment of the loan to avail the benefits of interest relief.
How to obtain a loan of up to ₹5 lakh
The Central Government increased the loan limit under the Kisan Credit Card (KCC) scheme, raising the cap directly from ₹3 lakh to ₹5 lakh. However, this does not mean every farmer will automatically receive ₹5 lakh; the bank determines the specific limit based on factors such as the farmer’s landholding, crops, agricultural requirements, and repayment capacity. Your KCC limit will depend on the bank’s assessment. Once you take a loan for a cycle, repaying it within the stipulated timeframe allows you to easily secure a new loan.
When a guarantor is not required
The government has provided relief to small farmers: no guarantor is required for Kisan Credit Card loans of up to ₹2 lakh. This makes it easier to secure a loan from the bank.
