How Indian Farmers Save Money With Kisan Credit Card?

Kisan card

Even though 70% of the Indian rural sector depends heavily on agriculture for their livelihood, farmers are neglected from any financial benefit.

So, it is a widely accepted fact that Indian farmers are not able to avail of the benefits of external financing provided by most financial institutions. In order to provide financial assistance to all the farmers of our country, the Government of India introduced the Kisan Credit Card Scheme.

What is a Kisan Credit Card?

Earlier, Indian farmers used to avail funds at high-interest rates from the unorganized sectors, which led them to a financial pitfall. To negate such cases, the Kisan Credit Card Scheme was launched in 1998 to provide short-term credit to farmers. This model scheme, also referred to as the Pradhan Mantri Kisan Credit Card Yojana, was recommended by the National Bank for Agriculture and Rural Development (NABARD).

So, Kisan Credit Card (KCC meaning) is a unique government initiated policy through which Indian farmers can avail loans at nominal interest rates. Most financial institutions and reputed NBFCs in urban and rural sectors in India provide Kisan Credit Cards, with the help of which farmers can avail funds to purchase agricultural equipment.

Farmers can accumulate savings with the help of this credit card scheme due to these offered benefits –

  • Flexibility in repayment as borrowers can opt to repay after the harvest season.
  • Nominal interest rates compared to other loans.
  • Farmers can avail of crop insurance through this credit card.
  • Borrowers are offered an expandable credit limit based on their income.
  • Farmers can avail discounts on purchasing products from partnered outlets.

How to apply for a Kisan Credit Card?

In order to obtain this credit card, individuals can opt for the online application process, on an official lender’s website, which comprises these following steps –

  1. Visit the website of your financial institution and navigate to the tab which displays the list of all available credit cards.
  2. Click on ‘Kisan Credit Card’ and enter all the personal information as required.
  3. Click on ‘Submit’ after providing all the necessary details and make a note of the reference number.
  4. Wait for your financial institution to process your KCC application. Next, you will be required to provide the necessary documents.
  5. Upon verification, you will be given a confirmation document of your KCC approval.

On availing this card, you can check out the ways to activate credit cards through customer care services.

Eligibility criteria for KCC loan scheme

To avail the KCC, you need to meet the eligibility criteria, associated with this government scheme, which are –

  • An individual farmer or a co-borrower who is an owner-cultivator is eligible for the Kisan Credit Card Scheme.
  • Individuals who can obtain a loan under this scheme also include –
  1. Tenant farmers, sharecroppers, oral lessee, etc.
  2. Self-Help Groups, Joint Liability Groups, which also include tenant farmers, sharecroppers, oral lessee, etc.
  • Beneficiaries who are eligible in availing KCC that belongs under fisheries and animal husbandry category are –
  1. Dairy farmers who own sheds or have let out these sheds on rent.
  2. Poultry farmers and tenant farmers of sheep, pigs, goats, birds, etc.
  3. Inland fisheries who own fishing activities on ponds, any open water body, tank, hatchery, etc.
  4. Marine fisheries who own the license of fishing related activities in estuaries or the sea.

Being unable to meet the demands of the eligibility criteria or providing inaccurate documents are among the main reasons why your credit card application can be rejected.

As per the recent updates by Reserve Bank of India regarding the KCC loan scheme, borrowers are provided with a Kisan Credit Card and a free smart debit card.

In the event, if you are not eligible for this scheme, you can opt for the  SuperCard, which comes with multiple benefits.

Hence, Indian farmers can consult with the above discussion to save money through the Kisan Credit Card Scheme. After obtaining this credit card, they can check the procedure to change the credit card PIN number and update it in regular intervals for added security purposes.

Read Previous

Things to Do on Your Honeymoon in Greece

Read Next

Why Scarves are so-called versatile Fashion Accessory?

Leave a Reply

Your email address will not be published. Required fields are marked *