Pradhan Mantri Kishan Credit Card Scheme is launched by NAABARD National Bank for Agriculture and Rural Development. The scheme is initiated to save farmers from the high-interest rates which are charged by the money lenders in an unorganized sector. Under the scheme, farmers can avail of loans when they require it. The interest charged on the loan also changes which means if customers make payments on time, then they are charged with a low-interest rate.
Kisan credit card loans charge a low rate of interest. The scheme is introduced to ensure the credit requirements of the farmers in the agriculture, fisheries, and animal husbandry sector.
It helps farmers to avail short term loans and provides them with a credit limit for purchasing equipments and for other necessary expenses as well. Under the scheme, farmers are exempted from a high rate of interest on regular loans offered by banks. With the help of the scheme, farmers can repay the loan according to the harvesting period of their crop for which the loan was given
ELIGIBILITY CRITERIA FOR THE SCHEME – PRADHAN MANTRI KISAN CREDIT CARD SCHEME (KCC)
i. An individual farmer who is an owner cultivator.
ii. Farmers who belong to the group and are joint borrowers.
iii. Sharecroppers and tenant farmers are also eligible for the scheme.
iv. Self-help groups of the farmers, sharecroppers are also eligible.
v. Farmers who cultivate crops and do other activities like animal husbandry, or are fishermen, etc.
DOCUMENTS REQUIRED- PRADHAN MANTRI KISAN CREDIT CARD SCHEME (KCC)
1. Properly filled and signed in the application form
2. Aadhaar card, voter card, pan card for identification proof.
3. Address proof documents like driving license, voter id, etc.
4. Land documents
5. Passport size photos
6. Security PDC which is requested by the bank for issuing loans.
PROCESS OF APPLICATION FOR THE SCHEME- PRADHAN MANTRI KISAN CREDIT CARD SCHEME (KCC)
Firstly, visit the website of the bank to apply for the scheme.
Secondly, on the website from a list of options, choose Kisan credit card.
Thirdly, click on the option of apply and the application form will be displayed on the screen.
Fill the important details and click on the submit button.
Then, the application reference number will be given to the applicant.
If the applicant will be eligible, the bank will inform the applicant within 3 to 4 days.
Offline, the applicant has to visit the branch of the bank which is nearby.
Then can start the application process with the help of a bank representative.
Once the process is completed, the bank’s loan officer can help the farmer with the loan amount.
BENEFITS OF THE SCHEME
Farmers can fulfill their financial requirements related to agriculture and other activities.
Farmers will be offered a savings account with an attractive rate of interest.
The flexible payments option is available
Hassle-free disbursement procedure.
A single credit facility will be given for agricultural and other needs.
Help will be provided with the purchase of fertilizers and seeds.
Smart and debit cards will also be given to farmers under the scheme.
FEATURES OF THE SCHEME – PRADHAN MANTRI KISAN CREDIT CARD SCHEME (KCC)
Credit for investments provided for agriculture needs like dairy animals and pumping sets etc.
The interest rate offered on the loan is as low as 2%.
Crop insurance coverage will be provided against the natural calamity.
The repayment period of the loan is decided on the basis of the harvest of crops.
The maximum loan can be taken up to 3 lakhs by the farmers.
Farmers who will deposit money in the Kisan credit card account will be given a high rate of interest.
Interest will be provided on saving bank rate credit balance in the KCC account.
Free ATM card for KCC borrowers.
Specific notified crops and areas are covered under crop insurance for all KCC loans.
Collateral security is waived off up to a limit of rupees 1.60 lakhs.
OBJECTIVES OF THE SCHEME
• To provide farmers loans with a low rate of interest.
• To improve their living conditions.
• To help small, marginal farmers.
• Under the scheme, assistance in the form of institutional credit will be provided by the banks to cope up with the high cost of cultivation.
• The scheme will free farmers from the clutches of moneylenders.
Under the scheme, there are over 25 lakh beneficiaries of the Kisan credit card scheme all over the country. The government has estimated the amount of rupees 20,000 crores which will be used to sanction loans to KCC cardholders. The scheme by the government of India is for the welfare of the farmers by improving their financial condition through an easy process for sanction of loans under the scheme. Insurance coverage is provided for any damage caused to crops due to natural calamity. All this will benefit the small and marginal farmers by improving their standard of living and productivity of crops.