India is mainly an agricultural country. More than 60 % of our population depends on agriculture and the agri-allied sector for their livelihood. As we know the production in agriculture directly depends on the climatic condition, amount of rainfall, management practices etc. All these are changeable factors. . The farmer's income is very uncertain. Farmers get their produce prices when they sell their agricultural produce to the market. Farmers require money at the time of primary operations like purchasing of seed, pesticide and insecticide, irrigation, field preparation etc.
Lack of agricultural credit or the access to it forces the farmers to resort to the unorganized sector, moneylenders for loans. Moneylenders may lure the farmers into offers that look lucrative. They charge higher rates of interest and ask for collateral. In the vicious circle of moneylenders, the farmer always lives in debt.
Over the years, the Government has realized the plight of the farmers and has come up with several credit schemes to help them. Kisan Credit Card is one of them. Through K.C.C Farmers can take out a loan of up to Rs.3 lakh and also avail of produce marketing loan with a very low-interest rate.
What is Kisan Credit Card (K.C.C.)?
The K.C.C is a central government scheme that provides timely access to credit to the farmers. The K.C.C was launched in 1998 to provide short term credit and term loan to the farmers. The model scheme of K.C.C. was prepared by NABARD (National Bank for Agriculture and Rural Development) on the recommendation of the R.V.Gupta committee. Under this scheme, two types of loan are provided to the farmers. First Short term Loans and Second Term loans
Short-term loan is provided for purchasing Seed, Fertilizers, Pesticides, Insecticides, Equipment and other operational tools that are required for agriculture. These loans are less in amount.
Term loans are high in amount. These types of loans are offered for allied activities like buying equipment, land development, and drip irrigation.
Interest Rate: Loans under the K.C.C are offered generally 7% for the amount under Rs 3 lakh. In addition, the central government offers interest subsidies that can go up to 3 % depending on the credit history of the farmer. The amount and interest rate on loans above Rs. 3 lakh is decided by the bank.
Eligibility for K.C.C
· Small and marginal farmers
· Sharecroppers
· Lessee and tenant farmers
· The Self Help Group and Joint Liability Groups
In 2019, it is extended for fisheries and animal husbandry for giving financial support.
Document Required for K.C.C;
1. Duly filled application form
2. Identity proof( Voter Id, PAN Card, ADHAR Card, Passport)
3. Address proof(Voter Id, PAN Card, ADHAR Card, Passport)
4. No Due certificate from the neighboring area branches of the bank.
Mode of Application:
Several banks are providing the facility of the online application form. Applicants can apply online by the official site of the bank and get the K.C.C card at their home. Still, there are many banks, where you have to go physically to the branch of the bank with the required document.