How Kisan Credit Card Will Help the Indian Farmers?


The Government of India initiated the Kisan Credit Card (KCC) scheme back in August 1998. It was launched by the Reserve Bank of India and NABARD. The objective of this scheme is to provide farmers with quick access to credit at a subsidised interest rate. This credit scheme came into motion to reduce the dependency of farmers on informal lending sectors that incur colossal interest rates on the amount borrowed by the farmers that eventually drown them in debt.

Currently, there are 6.95 Crore effective KCCs, which allow farmers to avail crop loans with a subsidised interest rate, presented by the government. KCCs have extended their loan providing scheme even to the farmers who are associated with animal husbandry or fishery activities.

These credit cards for farmers are offered by the rural lenders, co-operative financial institutes and by other non-banking financial companies.

Listed below are the steps on how to get Kisan Credit Card, from financial institutions.

  • You have to visit your preferred financial lender’s official website.
  • Look thoroughly in their provided credit card list and select “Kisan Credit Card.”
  • Fill up the required columns with your necessary details and apply for your KCC by clicking on “Submit.”
  • Note down the message bearing your reference number, flashed on your screen. Wait till the financial institute initiates your application process.

Documents required to avail KCC

To know how to get Kisan Credit Card, you need to procure certain essential documents to your lender.

  • Correctly filled application form.
  • Address proof that includes latest utility bills, any identity proof with the permanent address, etc.
  • Identity proof that includes Voter ID card, Aadhaar Card, PAN card, Passport etc.

Eligibility criteria for Kisan Credit Card loan

After knowing about how to get Kisan Credit Card, the next important thing to learn is the specific set of categories that you have to fall under to avail loan through this scheme –

  • Have to be a tenant farmer, sharecropper or an oral lessee.
  • Have to be an owner-cultivator who is a joint borrower.
  • Should be a part of the self-help or joint liability group, which includes tenants, oral lessees, farmers, sharecroppers, etc.

Benefits of Kisan Credit Card

  1. Avail discounts from dealers on certain specific transactions mentioned in the beneficiaries list of KCC.
  2. Lower interest rates on specific loans as compared to other loans.
  3. Flexibility on repayment of credit card loan. The government has stated rules to allow repaying of your credit card debt amount after their season of harvest.
  4. Financial coverage for crop damage.
  5. A single loan for all agricultural needs, there is no need for the farmers to apply credit for every crop. 
  6. Extended credit card limit based on your income; there is no rigidity regarding cash.
  7. Assured availability of credit at any moment to mend any unforeseen circumstances.
  8. There is no need for the occasional appraisal; the credit facility lasts up to 3 years.
  9. Allowance to draw credit from the lender at any moment to buy inputs.
  10. No or minimum paperwork required with simplified documentation for withdrawal of cash.

Features of the Kisan Credit Card scheme

  1. Flexible transaction method with any number of withdrawals and repayments within the credit limit.
  2. Farmers will be provided with a passbook apart.
  3. Beneficiaries are entitled to receive enhanced credit card limits in case the costs are increased, or there is a change in the cropping pattern, etc.
  4. 4)      The government has also taken into account, the aspect of sensible use of the amount conferred by making the farmers use a credit card wisely

All these benefits and features are exclusively curated for the Indian farmers so that they do not succumb under the high interest rates that are levied on them by the informal financial sectors. The benefit to provide the farmers with short term fiscal requirements at subsidized interest rate is one of the many extras offered by this scheme. If you are willing to take advantage of these schemes, fill up this Registration Form.

However, you would not be in the recipient list of this scheme if you fail to meet the eligibility criteria. To obtain a credit card with more lucrative benefits, you can opt for the Bajaj Finserv RBL Bank Super Card.

Thus, a detailed knowledge about the above mentioned credentials and eligibility criteria is requisite before learning how to get Kisan Credit Card. Make sure to clear the dues before time to avoid any hassles later.

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