Kissan Credit Card Loan Scheme 2020: Apply Online for Kissan Credit Card, Kissan Credit Card Eligibility, Benefits

Kisan Credit Card: The Kisan Credit Card is a scheme of the Government of India that aims to save farmers from high-interest rates typically paid by unorganised money lenders. Under this Kisan Credit Card (KCC) scheme, the interest rate can be as low as 2.00 percent. The top bank that offers Kisan Credit Card includes SBI, Axis Bank, HDFC, etc. If you are looking to apply for the Kisan Credit Card then avail the details given below.

Updated: Jun 03, 2020 16:54 IST

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Niranjani Jesentha Kumari P

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Kisan Credit Card

The Kisan Credit Card Scheme was introduced on the recommendations of the R V Gupta Committee, and this scheme was approved by the National Bank for Agriculture and Rural Development ( NABARD). The Kisan Credit Card scheme aimed to provide farmers with term loans and cash credit to support them with their agricultural needs.

What is the Eligibility Criteria to apply for Kisan Credit Card?

  • All farmers who are either individuals / joint land lenders and engaged in farming or related activities 

  • Individuals who are owner cum cultivators

  • All the Tenant farmers or Oral lessees and Share Croppers in the agricultural land

  • All tenant farmers or oral lessees and sharecroppers (agricultural land)

  • Self Help Groups or Joint Liability Groups including tenant farmers or sharecroppers

  • Farmers should be eligible for an Rs.5,000 and above production credit, and then he/she has the right to a KCC.

  • Only those farmers who are liable for short-term loans to grow crops or other related activities as well as non-farm activities

  • The farmers should be the residents of the bank's operational area

What are top banks in India offering Kisan Credit Card?

State Bank of India: SBI is one of Kisan Credit Cards' biggest issuers. The interest rate on SBI Kisan Credit Card on loans up to Rs. 3.00 lakh will go as low as 2.00 percent per annum.

Punjab National Bank: One of the most requested credit cards is the PNB Kisan Credit Cards. The application process is very quick, and users should expect prompt post-processing disbursement.

HDFC Bank: HDFC Bank Kisan credit cards offer loans at about 9.00 percent interest rate. The overall available credit limit is Rs. 3.00 lakh. Cheque book is also released with a credit cap of Rs. 25,000. In addition, if a farmer is suffering from crop failure, it can be extended for up to four years or more. Insurance coverage is often offered against loss of crops due to natural disasters or pest attacks.

Axis Bank: Axis Bank Kisan Credit Cards offer interest rate loans beginning at 8.85%. However, the interest rate is lower than this in line with government subvention schemes. 

What are the documents needed for Kisan Credit Card?

Individuals who wish to use a Kisan Credit Card must submit their ID & address. Individuals can submit any one of the following documents.

  • PAN Card

  • Aadhaar Card 

  • Driver's License 

  • Passport 

  • Voter's ID

  • Overseas Citizen of India Card

  • Person of Indian Origin Card

  • Job card issued by NREGA 

  • Letters issued by the UIDAI

  • Aadhaar Card  

  • Utility Bill not more than 3 month's old

  • Ration Card

  • Property Registration Document

  • Person of Indian Origin Card

  • Bank Account Statement

How to Apply for Kisan Credit Card?

  • Visit the preferred bank's official website and visit the Kisan Credit Card Section.

  • Then download and print the application form

  • Fill all the details in the application form

  • Now visit the nearest bank branch and submit the application form along with the necessary documents 

Farmers seeking Kisan Credit Card may also visit a preferred bank and contact a bank official. The official will be helping the applicant fill out the application. The loan officer will then exchange the necessary information and process the request.

How does a Kisan Credit Card Work?

Kisan Credit Cards are different from standard unsecured credit cards. KCC's activities are different too. KCC lends the cardholder complex loans. That means users can take out a loan sum against a maximum credit limit as per their needs. This will ensure they don't have to pay a large interest associated with a large amount of principal. The way they work is as follows.

The customer must go to the bank and then apply for a Kisan Credit Card 

The loan officer will then decide on the amount of the loan which the applicant will receive. Might go up to Rs. 3.00 lakh

Upon approval of the amount, the user will be issued a Kisan credit card from the bank 

Cardholders can now purchase products against the extended credit limit

The interest rate will apply only to the amount of the loan taken 

Payment in due time would ensure that the minimum interest rate on loan taken out is applied

Kisan Credit Card: Fees and Charges

The Kisan Credit Card is an effective way of arranging funds for agricultural needs for farmers. Interest charged against KCC may vary from bank to bank. Normally the Kisan Credit Card charges 7-9 percent interest on a credit limit of up to 3 Lakhs. Banks offer KCC loans to those with a strong credit background, at subsidized interest rates.

How is the Kisan Credit Card beneficial to farmers?

Kisan Credit Card has a range of benefits that support the farmers in many ways. Not only does it provide them with long-term and short-term credit, but it also helps them to have easy access to the funds without any trouble. A few such benefits of Kisan Credit Cards are listed below.

  • Hassle-free Credit

  • Flexible Repayment

  • Revolving Credit Facility

  • Insurance

  • Broad Coverage

Hassle-free Credit: The application process for a Kisan Credit Card is simple and requires basic documentation. KYC documentation from the borrower would only be needed once for the prior approval. Each crop season, however, should documentation be updated accordingly when the farmer switches crops. The screening process is easy and quick and is therefore very helpful for farmers who are not familiar with the banking procedure

Flexible Repayment: Kisan credit card gives the farmers a flexible repayment plan. Term loans tend to be repaid over the lifetime of the loan in installments, and the credit card payments will be collected when and when due. If the crop goes wrong due to a natural disaster or insect attack, the creditor may have the option to reschedule payments by paying a minimum interest.

Revolving Credit Facility: Cardholders will also enjoy the revolving credit facility on Kisan Credit Cards, meaning that if they are unable to afford to pay the bills on time, it will be added to the statement for next month. Interest is charged on the unpaid amount.

Insurance: Kisan Credit Cardholders can obtain insurance for crop loans taken under the KCC Scheme under the National Crop Insurance Services. Users also get up to 50,000 personal accident insurance coverage for death or permanent disability and up to 25,000 coverage for other risks.

Broad Coverage: The Kisan Credit Card Scheme includes the different categories of farmers, including owner-cultivators, sharecroppers, tenant farmers, oral lessees, self-help groups, and shared responsibility groups. The Government extended this program to animal husbandry, dairy farming, and fisheries in Budget 2018. Farmers will have a production credit of 5,000 or more to be eligible for the scheme.

Kisan Credit Card: 6-Month Moratorium

The Coronavirus pandemic resulted in a lot of people losing revenue and disrupting cash flow. Given this condition, India's Reserve Bank has granted financial institutions, banks, and NBFCs permission to extend the EMI payment moratorium for 3 more months until 31-August-2020. The facility is extended to all loan accounts that have a payment date falling between March 1, 2020, and August 31, 2020, and have not been overdue already.

Anyone whose deadline for repayment falls between 1 March 2020 and 31 August 2020. 

To apply for this moratorium period, customers will have to contact the Bank. However, if the borrower skips the payment between 1 March 2020 and 31 March 2020, some banks will automatically extend the moratorium term on the loan account.

They can take a moratorium duration of only three months. Customers are urged to make their payments so as to prevent interest charges.

Customers planning to avail Moratorium period should ensure that the standing instructions they provided at the bank have been stopped.

This facility will not affect your credit score or be counted as a payment default.

Kisan Credit Card- FAQ

1. What is Kisan Credit Card?

The Kisan Credit Card Scheme was introduced on the recommendations of the R V Gupta Committee, and this scheme was approved by the National Bank for Agriculture and Rural Development ( NABARD). The Kisan Credit Card scheme aimed to provide farmers with term loans and cash credit to support them with their agricultural needs.

2. Can I apply for Kisan Credit Card by visiting the bank?

Farmers seeking Kisan Credit Card may also visit a preferred bank and contact a bank official. The official will be helping the applicant fill out the application. The loan officer will then exchange the necessary information and process the request.

3. What are the benefits of Kisan Credit Card?

Kisan Credit Card has a range of benefits that support the farmers in many ways. Not only does it provide them with long-term and short-term credit, but it also helps them to have easy access to the funds without any trouble. A few such benefits of Kisan Credit Cards are Hassle-free Credit, Flexible Repayment, Revolving Credit Facility, Insurance and Broad Coverage.

4. Does HDFC Bank offers Kisan Credit Card?

Yes, HDFC Bank Kisan credit cards offer loans at about 9.00 percent interest rate. The overall available credit limit is Rs. 3.00 lakh. Cheque book is also released with a credit cap of Rs. 25,000. In addition, if a farmer is suffering from crop failure, it can be extended for up to four years or more. Insurance coverage is often offered against loss of crops due to natural disasters or pest attacks.

5. What are the Charges of Kisan Credit Card?

The Kisan Credit Card is an effective way of arranging funds for agricultural needs for farmers. Interest charged against KCC may vary from bank to bank. Normally the Kisan Credit Card charges 7-9 percent interest on a credit limit of up to 3 Lakhs. Banks offer KCC loans to those with a strong credit background, at subsidized interest rates.