While presenting the Union Budget 2020-21, the honourable finance minister mentioned that the government had set a target of achieving Rs.15 lakh crore agricultural limit in the same financial year.
To accomplish this goal, the government is still relying heavily on Kisan Credit Card among the available schemes.
The Kisan Credit Card scheme was introduced in 1998 with the help of the National Bank for Agricultural and Rural Development (NABARD). The objective of this scheme is to fulfil the requirement of the agriculture sector in the country.
Those wondering how to apply for a Kisan Credit Card can do so via any major financial institution in the country.
What is a Kisan Credit Card (KCC)?
KCC is a short-term credit option to fulfil the agricultural needs of farmers. It helps farmers to secure appropriate credit at a competitive interest rate without much hassle. They are not required to go through any screening process before disbursing a loan.
Furthermore, the objective of this scheme is to eliminate the dependency on the non-institutional mode of credit. The rate of interest here is high, and the terms and conditions of the loan are vicious, which leads farmers to fall into a debt trap.
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The original idea behind this KCC loan was to ensure that farmers are provided adequate credit to purchase their agricultural inputs like seeds, fertilizers, pesticide, machinery, etc.
Features and benefits of KCC
● A single credit to fulfil the financial requirement of agriculture as well as ancillary activities.
● Flexibility in terms of loan repayment means farmers can pay after the harvest season.
● Swift and straightforward loan disbarment procedure.
● Expandable credit limit.
● Competitive interest rates.
● Associated crop insurance.
● Funds can be withdrawn as per the requirements.
Eligibility of KCC
The eligibility criteria for this credit card are as follows –
● Individual farmers who are owners and cultivators.
● Joint borrowers who are owners and cultivators.
● To tenant farmers, sharecroppers, oral lessee.
● Joint liability group and self-help group of farmers.
● Individuals from fisheries and animal husbandry sectors.
How to apply for a Kisan Credit Card?
Farmers who are wondering how to apply for a Kisan Credit Card can do so via an online method. Follow these following steps to apply for a credit card online –
1. Visit the official website of a financial institution offering this credit card.
2. Select ‘Kisan Credit Card’ from the list of credit cards.
3. Click on apply.
4. It will redirect applicants to the application page.
5. Fill up the application form and then click on submit.
6. Once it is submitted an application reference number will be generated.
7. Note this number for future purposes.
If eligible, the lending institution will get in touch with the applicants and inform them about further procedure and documents required to complete this procedure. A date will be fixed for document verification and collection.
Following successful verification, the card provider will send the KCC to the registered address of the applicant.
According to the RBI guidelines, the necessary documents to secure a KCC depends on the lender’s internal guidelines. Hence, every financial institution has a separate requirement.
Applicants who will fulfil the eligibility criteria will be contacted by the financial institution for further process.
A date will be arranged for document verification and collection. If successful, the financial company will send the credit card to the registered address of the individual.
However, here are some essential documents required to acquire a Kisan Credit Card successfully.
● Duly filled and signed application form.
● KYC documents.
● Address proof.
● Land documents.
● Passport size photos.
● Any additional document requested by the lender.
According to the RBI guidelines, financial intuitions can decide the credit limit of any KCC according to their policies.
Those not eligible for KCC or seeking more benefits can apply for credit cards like the Bajaj Finserv RBL Bank SuperCard which comes with several industry-first features.
Credit limit of KCC
According to the guidelines of the Reserve Bank of India, financial institutions are free to determine the credit limit of the KCC they issue, which means there is no fixed credit limit.
Kisan Credit Card is a popular and helpful credit option for farmers as it offers easy credit. However, individuals must choose the right credit card before applying.
They can opt for other credit cards that can offer features and benefits which the KCC does not. For instance, the Bajaj Finserv RBL Bank SuperCard is a credit card that offers industry-first features like interest-free cash withdrawal from ATMs for up to 50 days.
Furthermore, the company also provides pre-approved offers to reduce the time taken to avail financing by simplifying the process. Pre-approved offers are available with credit cards, personal loans, business loans, etc. Individuals can check their pre-approved offers submitting a few essential details.
Individuals who still have any queries about how to apply for a Kisan Credit Card can visit the nearest office of any financial institution that offers the same to learn more about it. They must also comply with all the conditions to ensure their credit card application is not rejected.