Kisan Credit Card (KCC) is one of the most popular schemes among farmers. Introduced in 1998, the KCC scheme aims to simplify the loan process for farmers. Under this scheme, loans are provided for agricultural activities at an affordable interest rate of just 4 per cent. The minimum age for applicants is 18 years, and there is no upper age limit. A maximum loan of up to Rs 3 lakh can be taken under this scheme, with a maximum loan tenure of 5 years. The validity of the Kisan Credit Card is also five years.
To apply for a Kisan Credit Card, farmers must meet certain eligibility criteria, such as being an owner-cultivator, sharecropper, tenant farmer, or a member of a self-help group or joint liability group. They must also be involved in the production of crops or allied activities such as animal husbandry, or non-farm activities like fishing. Earlier, loans above Rs Rs 1.60 lakh required a guarantee. Recently, the Reserve Bank of India (RBI) increased the guarantee-free loan limit to Rs 2 lakh. This means loans up to Rs 2 lakh can now be availed without any collateral.
How to apply for a KCC loan
- Step 1: Visit the website of the bank where you want to apply for the Kisan Credit Card scheme.
- Step 2: From the list of options, select the “Kisan Credit Card” option.
- Step 3: Click on “Apply,” which will direct you to the application page.
- Step 4: Fill out the form with the necessary details and click “Submit.”
- Step 5: You will receive an application reference number. If you meet the eligibility criteria, the bank will contact you within 3 to 4 working days.
Required documents
- Two passport-sized photographs
- ID Proof: Such as a driving license, Aadhaar card, voter ID, or passport.
- Address proof: Such as a driving license or Aadhaar card.
- Land ownership proof: Verified by revenue officials.
- Crop details: Information on the crops being cultivated.
- Security documents: Required for loans exceeding Rs 2 lakh.
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