The Kisan Credit Card (KCC) scheme is an initiative by the Government of India to provide timely and hassle-free credit to farmers. Launched in 1998, the scheme aims to meet the financial needs of farmers for crop cultivation, purchase of seeds, fertilizers, equipment, and other agricultural expenses. By offering low-interest loans and flexible repayment options, KCC empowers farmers to manage their working capital efficiently and ensures uninterrupted farming operations.
The scheme also supports allied activities such as dairy, poultry, fisheries, and horticulture, helping farmers diversify their income sources and improve livelihood security.
Key Benefits of Kisan Credit Card
KCC provides multiple advantages to farmers, reducing financial stress and promoting agricultural growth:
| Benefit | Description |
|---|---|
| Quick Credit Access | Instant loans for crop production and allied activities |
| Low Interest Rate | Concessional interest rates, often subsidized by the government |
| Flexible Repayment | Easy repayment options aligned with harvest cycles |
| Insurance Cover | Optional crop and personal accident insurance for borrowers |
| Repeat Credit Facility | Farmers can avail credit repeatedly within sanctioned limits |
These benefits allow farmers to plan their cultivation and other agricultural activities without financial interruptions.
Eligibility Criteria
Farmers must meet certain conditions to be eligible for the Kisan Credit Card:
| Criteria | Requirement |
|---|---|
| Farmer Type | Small, marginal, and large farmers with agricultural land |
| Income Source | Must be engaged in farming or allied activities |
| Landholding Proof | Documents proving ownership or lease of farmland |
| Credit History | No major defaults in previous bank loans |
| Age | Minimum 18 years and maximum 70 years at loan maturity |
Eligibility ensures that farmers with genuine agricultural activities can benefit from credit support.
How to Apply for Kisan Credit Card
Applying for a KCC is straightforward and can be done through banks or online:
- Visit the nearest bank branch that provides KCC services.
- Fill out the Kisan Credit Card application form with personal, land, and crop details.
- Submit required documents, including Aadhaar, landholding proof, bank account details, and income proof.
- The bank evaluates the application and sanctions the credit limit based on landholding and income.
- Once approved, the KCC is issued, and farmers can withdraw funds as needed.
Farmers can also check online portals of banks for eligibility, application forms, and tracking of their KCC status.
Credit Limit and Coverage
The credit limit under KCC depends on landholding, crop type, and financial requirements:
| Landholding Type | Maximum Credit Limit |
|---|---|
| Small Farmers | Up to Rs. 3 lakh |
| Marginal Farmers | Up to Rs. 1.5 lakh |
| Large Farmers | Based on land size and income, up to Rs. 10 lakh |
| Allied Activities | As per requirement for dairy, poultry, fisheries, or horticulture |
This ensures that credit is allocated proportionally to the needs and capacity of each farmer.
FAQs
Q1: Can tenant farmers apply for KCC?
Yes, tenant farmers and sharecroppers can apply with proper land use documentation.
Q2: Is there any processing fee for the Kisan Credit Card?
No, most banks provide KCC without any processing fees under government guidelines.
Q3: Can KCC be used for allied agricultural activities?
Yes, loans under KCC can be used for dairy, poultry, fisheries, and other allied activities.