Features and Benefits of Kisan Credit Card

April 21, 2022 Finance Talk Valli Sarvani No comments

The Kisan Credit Card scheme was launched in 1998 to provide short-term credit to farmers. Individual and communal farmers in agriculture, fisheries, and animal husbandry can avail of short-term loans under the scheme to buy equipment or meet expenses.

Banks offer loans under the Kisan Credit Card scheme at an interest of 7-9% per annum. Cardholders who have a good track record in repaying the loan will be given a subsidy of 2% in the interest rate. The Kisan Credit Card has many benefits.

Here are the features and benefits of the Kisan Credit Card:

Individual farmers, sharecroppers, tenant farmers, or an oral lessee are eligible to obtain a loan under the Kisan Credit Card (KCC) scheme.
KCC requires simple documentation. The loan disbursement procedure is also simple. So, it is useful for those who are not aware of banking procedures.
Farmers can obtain a loan of up to ₹3 lakhs. They can avail of the credit for up to 3 years. They will have flexible repayment options.
They can repay after the harvest or reschedule their repayment in the event of crop damage or loss due to natural disasters.
The credit limit depends on the landholdings of a farmer, his production rate and credit needs.
There is no need for collateral for a loan up to ₹1.60 lakhs.
KCC holders are offered a passbook-cum-card. They will have insurance cover up to ₹50,000 for death or permanent disability. For other risks, there will be an insurance cover of up to ₹25,000.
Farmers can get a term loan or single credit for their agricultural and allied needs. If required, they will be assisted while buying seeds and fertilizers. They can also utilize cash discounts when bought from select merchants or dealers.
Eligible farmers are allowed to open a savings account with an attractive interest rate. They will be issued with a smart card and a debit card.

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