What is Kisan Credit Card - eligibility and how to apply

• Kisan Credit Card, a government of India scheme is meant to save the Indian farmers from the burden of high-interest rates charged by the money lenders in the unorganized sector.
  
  
• This scheme extends loan facility to the farmers at interest rates as low as 2% and a collateral-free loan up to ₹1.60 lakh besides a complimentary insurance coverage.
  
  
• The repayment schedule will match with the crop harvesting and marketing season, it will help farmers.

Kisan Credit Card (KCC) scheme seeks to relieve the farmers from the clutches of the very high interest charged by the private sector money lenders in the unorganised lending segment in India.

The interest rate that farmers pay is low, at around 2%, and the repayment schedule is in line with the harvesting and marketing season of the different crops. These two aspects make this scheme very attractive to the cultivators in India.

Kisan Credit Card eligibility criteria

• Famers who are individuals or joint borrowers of the cultivable land and are engaged in farming or related activities
• Individual land owners as well as cultivators
• Tenant farmers, oral leases, and shared croppers of the cultivable lands
• Self-help groups or joint liability groups formed by sharecroppers or tenant farmers

The farmers applying for KCC must reside in the jurisdiction of the given bank. The applicants must be able to pool out a production credit of Rs. 5,000 or more to become eligible for the KCC. The KCC can be availed of for crop production, non-farm activities or other allied undertakings.

Documents needed to apply for KCC

To avail of Kisan Credit Card, the farmers must prove their identity and address. The documents approved for the said purpose include the following.

Identity proof options:

• PAN card
• Aadhaar card
• Driver’s license
• Passport
• Voter’s ID
• Person of Indian Origin Card
• Job card issued under Mahatma Gandhi Rural Employment Guarantee Act (MNREGA), and
• Letters issued by the UIDAI.

Address proof options:

• PAN card
• Aadhaar card
• Driver’s license
• Passport
• Voter’s ID
• Utility Bill from the preceding three months
• Ration card
• Property registration document
• Person of Indian Origin Card
• Job card issued under Mahatma Gandhi Rural Employment Guarantee Act (MNREGA), and
• Bank account statement.

In addition, the applicants must get ready with recent passport size photographs, and any other documents as required by the banks.

Kisan Credit Card application procedure

• Visit the official site of any bank of your choice and visit the Kisan Credit Card Section.
• Download the application form and print it out.
• Fill out the application form.
• Visit the nearest branch of the bank and submit the application long with the documents asked.
• The loan officer will provide the details necessary to the applicant.
• Upon the sanction of the loan amount, the KCC will be dispatched.

Alternatively, the applicants can also take help from the bank to apply for the KCC. The banks have specially designated personnel for helping the applicants fill out the form and provide the guidance in complying with the other requirements.