The National Bank for Agriculture and Rural Development (NABARD) created the Kisan credit card initiative in 1998 to provide credit cards to small and underprivileged farmers. We’ve all seen newspaper headlines about small farmers committing suicide after falling into a debt trap and being exploited by landlords and moneylenders. Lack of funds stymies the farming process, forcing farmers to take out high-interest loans. The Kisan credit card was designed to lessen marginalised farmers’ reliance on landlords for loan repayment. Various commercial banks, state co-operative banks and regional rural banks provide the Kisan Credit Card. KCC helps the farmers secure timely credit at reasonable interest rates in a hassle free manner.
Eligibility & Documents Required
There is a certain eligibility that needs to be fulfilled in order to get a Kisan credit card. The eligibility criteria for KCC is as follows:
- Owner-cultivators who also are farmers,
- Individuals / Joint borrowers,
- Farmers’ Self-Help Groups or Joint Liability Groups,
- Tenant farmers,
- Sharecroppers,
- Oral lessees, etc.
Along with the eligibility criteria the documents required to apply for a KCC are as follows:
- Passport-size photograph of the applicant,
- ID Proof (For example- Applicant’s voter ID card, PAN card, Driving Licence, or Adhaar card)
- Address proof,
- Duly filled and signed application form.
Benefits of a Kisan Credit Card
There are various benefits that come along with a Kisan credit card. The main objective of the government in launching this card was to empower the farmers in the country and to provide them with a credit card that has certain benefits. Some of the benefits of KCC are as follows:
- KCC strives to give small and underprivileged farmers timely and enough loans at reasonable interest rates for their farming needs.
- It assists them in meeting their short-term credit requirements, such as purchasing seeds and fertiliser, as well as post-harvest expenses.
- It also assists farmers with agricultural investment finance needs.
- Collateral security may be obtained at the Bank’s discretion for loan limits exceeding 1.00 lakh in the case of non-tie-up advances and exceeding 3.00 lakh in the case of tie-up advances.
- Loan with a low interest rate, flexible repayment options, and a hassle-free disbursement procedure.
How to Apply for a Kisan Credit Card?
You can either apply online or offline for a Kisan credit card. Both the methods are available, therefore you can apply by either method. To apply online for a Kisan credit card you just need to follow the steps below:
- Head over to the Bank’s website.
- Select the agriculture sector from the drop-down menu.
- Navigate to the Kisan credit card option and click “Apply.”
- You will be redirected to the application page by the website.
- Fill out the relevant information and then click “Submit.”
- A reference number will be assigned to you.
- If you are eligible, the bank will contact you within a few working days to take you through the rest of the procedure.
Similarly you can visit the bank to apply offline for a Kisan credit card. To apply offline, head over to your nearest branch and speak with a bank employee about the Kisan credit card. He will assist you with the procedure on how you can apply for credit card. Since most of the farmers are inexperienced with the application process, banks offer offline application services to even the most rural areas. Fill in the application form along with all the required documents and submit it to the bank. The bank will then evaluate your application and get in touch with you within a few working days and will then take your application forward. Just make sure that you fulfil all the eligibility requirements before submitting your Kisan credit card application.
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