Under this Kisan Credit Card Scheme, over 25 lakh beneficiaries of PM Kisan across the country have been provided KCC and over 2,000 bank branches in rural areas have been tasked with providing the KCC to farmers. Note that owner cultivators, as well as tenant farmers, can avail loans on these KCCs to meet their agricultural needs at attractive rates of interest. State Bank of India (SBI), the country’s largest lender, offers farmers Kisan credit card (KCC).
The Kisan Credit Card (KCC) scheme was launched in 1998 with the aim of providing short-term formal credit to farmers. Owner cultivators, as well as tenant farmers, can avail loans to meet their agricultural needs under this scheme at attractive rates of interest. The government has also simplified the application process to increase interest among farmers. Repayment is also simplified and dependent on the harvesting season, reducing the farmers’ debt burden.
Eligibility for Kisan Credit Card? (who are Eligible)
All farmers – individuals/joint cultivator owners
Tenant farmers, oral lessees and sharecroppers, etc.
SHGs or Joint liability groups including tenant farmers.
How to apply for Kisan Credit Card?
Step 1: Visit the official bank website.
Step 2: Choose ‘Kisan Credit Card’ from the available list of credit cards and click on the ‘Apply’ button.
Step 3: You will be redirected to the online application page. Fill the required fields with accurate details before clicking on ‘Submit’.
Step 4: Once the application is submitted, the system will generate an application reference number. Note the same and use it for all future queries.
How to apply for SBI Kisan Credit Card?
Step 1: Visit SBI Bank official website sbi.co.in
Step 2: Click on ‘Agricultural & Rural’ tab
Step 3: Under ‘Agricultural Banking’, click on ‘Kisan Credit Card’.
Step 4: Click on Application Form and you will be directed to the form.
Step 5: Fill the required details and ‘Submit’ the form.
Features and benefits of Kisan credit card:
1. Farmers earn interest at saving bank rate on the credit balance in the KCC.
2. Borrowers shall be issued an ATM cum debit card (State Bank Kisan Card) so as to enable them to withdraw from KCC accounts from ATMs and point of sale (PoS) terminals.
3. Interest subvention at 2% per annum is available for loan amount up to Rs 3 lakh.
4. Additional interest subvention at 3% per annum for prompt repayments.
5. Notified crops / notified areas are covered under crop insurance for all KCC loans.
6. Quantum of loan for the first year will be assessed on the basis of the cost of cultivation, post-harvest expenses and farm maintenance cost.
7. For subsequent 5 year loan will be sanction on the basis of the increase in the scale of finance
8. Collateral security is waived for KCC limit up to Rs 1.60 lac. Sanctioned KCC limit will be considered for the purpose of fixing collateral security requirement
9. Simple interest at 7% p.a will be charged for one year or up to the repayment due date, whichever is earlier.
10. In case of non-repayment within the due dates, interest is applied at card rate. Beyond due date, interest will be compounded half-yearly.
11. The repayment period may be fixed as per the anticipated harvesting and marketing period for the crops for which a loan has been granted.
12. KCC offers short term loans to farmers at an interest rate of 4 percent on the condition of timely payment.
Who is eligible for this loan?
According to the SBI’s official website-www.sbi.co.in, all the farmers (individuals or joint borrowers) who are owner-cultivators, tenant farmers, oral lessees, sharecroppers, etc, single holding group (SGH) or joint liability group of farmers including tenant farmers are eligible for the loan.
KCC loan rate of interest:
For the loan under the KCC scheme, one has to pay simple interest at 7 percent per annum for a year or up to the repayment due date, whichever is earlier. In case of non-repayment within the due dates, interest is applied at card rate. However, if fail to pay beyond the due date, interest will be compounded half-yearly. However, the repayment period may be fixed as per the anticipated harvesting and marketing period for the crops for which a loan has been granted.
How to apply for KCC (Kisan Credit Card) loan?
The applicants may contact their nearest branches engaged in agricultural advance or even talk to the marketing officers visiting the village. They just need to fill in an application form along with their identity and address proof.
