As agriculture remains the backbone of the Indian economy, the government introduced several schemes and policies to support farmers. One of the most significant initiatives is the Kisan Credit Card (KCC) scheme, which aims to provide affordable and timely credit facilities to farmers. In this article, we will explore the KCC full form, meaning, benefits, and eligibility criteria.
Kisan Credit Card (KCC) is a credit scheme introduced in 1998 by the National Bank for Agriculture and Rural Development (NABARD) and the Reserve Bank of India (RBI).
It provides farmers with flexible and affordable credit facilities to meet their agricultural needs.
KCC also aims to reduce the dependence of farmers on non-institutional credit sources, such as moneylenders, who charge exorbitant interest rates.
KCC Full Form
The full form of KCC is Kisan Credit Card.
Kisan Credit Card is a credit card specifically designed for farmers. It acts as a means of identification for farmers and provides them with access to credit facilities to meet their agricultural needs. KCC is issued by all public sector banks, regional rural banks, and cooperative banks.
Features of Kisan Credit Card
- KCC is a revolving credit facility, which means that the farmer can use and repay the credit limit as per their requirements.
- The card is valid for five years and can be renewed by the bank.
- Farmers can withdraw cash from ATMs using their KCC.
- KCC comes with a personal accident insurance cover of up to Rs. 50,000, which provides financial protection to farmers and their families in case of accidental death or disability.
- KCC holders are also eligible for interest subvention of 2% p.a. if they repay the loan on time.
- Farmers can use the credit limit to meet their agricultural needs, such as buying seeds, fertilizers, pesticides, machinery, and other inputs.
Benefits of Kisan Credit Card
- KCC provides farmers with easy access to credit facilities at affordable interest rates.
- It helps farmers to meet their agricultural needs, which results in better crop yields and higher income.
- KCC reduces the dependence of farmers on non-institutional credit sources, which protects them from exorbitant interest rates and exploitation.
- Farmers can withdraw cash from ATMs using their KCC, which provides them with financial liquidity.
- KCC provides farmers with an insurance cover of up to Rs. 50,000, which provides financial protection to them and their families in case of accidental death or disability.
Eligibility Criteria for KCC
To be eligible for Kisan Credit Card, the farmer must fulfill the following criteria:
- The farmer must be an Indian citizen and a cultivator or a landlord.
- The farmer must have a satisfactory repayment record for previous loans, if any.
- The farmer must have a minimum landholding of 1 acre.
- Tenant farmers and sharecroppers are also eligible for KCC.
How to Apply for Kisan Credit Card?
To apply for Kisan Credit Card, the farmer must approach the nearest branch of any public sector bank, regional rural bank or cooperative bank with the following documents:
- Identity proof (Aadhar card, voter ID, passport, PAN card)
- Address proof (Aadhar card, voter ID, passport, utility bill)
- Land documents (ownership or lease agreement)
- Passport-sized photograph
The farmer will also have to fill out the KCC application form, which includes details such as the farmer’s name, address, landholding details, and crop details.
Documents Required for KCC
The documents required for Kisan Credit Card include:
- Identity proof
- Address proof
- Land documents
- Passport-sized photograph
Interest Rates on Kisan Credit Card
The interest rates on Kisan Credit Card vary from bank to bank and are usually linked to the prevailing repo rate. Currently, the interest rates on KCC range from 7% to 9% p.a.
Repayment Period for KCC
The repayment period for Kisan Credit Card depends on the crop cycle and the farmer’s repayment capacity. Generally, the repayment period for KCC ranges from six months to three years.
KCC Vs. Other Agricultural Loans
Compared to other agricultural loans, Kisan Credit Card offers several advantages, such as:
- Easy availability
- Flexible credit limit
- Revolving credit facility
- Personal accident insurance cover
- Interest subvention
The credit limit on Kisan Credit Card varies from bank to bank and depends on the farmer’s landholding and crop type. Generally, the credit limit on KCC ranges from Rs. 50,000 to Rs. 5 lakhs.
Kisan Credit Card comes with a personal accident insurance cover of up to Rs. 50,000, which provides financial protection to farmers and their families in case of accidental death or disability. Some banks also offer crop insurance cover as an add-on to KCC.
Kisan Credit Card is a significant initiative by the government to support farmers by providing them with affordable and timely credit facilities.
KCC not only meets the agricultural needs of farmers but also protects them from exploitation by non-institutional credit sources.
With its easy availability, flexible credit limit, and attractive features, Kisan Credit Card has become a preferred choice for farmers across India.
FAQs on KCC
- What is Kisan Credit Card?
Kisan Credit Card is a credit scheme introduced by NABARD and RBI to provide farmers with affordable and timely credit facilities.
- Who is eligible for Kisan Credit Card?
Indian citizens who are cultivators or landlords with a minimum landholding of 1 acre and a satisfactory repayment record are eligible for Kisan Credit Card.
- What is the credit limit on Kisan Credit Card?
The credit limit on Kisan Credit Card varies from bank to bank and ranges from Rs. 50,000 to Rs. 5 lakhs.
- What is the interest rate on Kisan Credit Card?
The interest rates on Kisan Credit Card vary from bank to bank and range from 7% to 9% p.a.
- What are the documents required for Kisan Credit Card?
The documents required for Kisan Credit Card include identity proof, address proof, land documents, and a passport-sized photograph.