Kisan Credit Card - 15 Mints Seminar Notes

Kisan Credit Card - 15 Mints Seminar Notes

 

The Kisan Credit Card (KCC) scheme is a credit scheme introduced in August 1998 by Indian banks.

This model scheme was prepared by the National Bank for Agriculture and Rural Development (NABARD) on the recommendations of R.V.GUPTA committee to provide term loans for agricultural needs. The Kisan Credit Card (KCC) scheme is a credit scheme introduced in August 1998 by Indian banks.

This model scheme was prepared by the National Bank for Agriculture and Rural Development (NABARD) on the recommendations of R.V.GUPTA committee to provide term loans for agricultural needs.

Objective:

Its objective is to meet the comprehensive credit requirements of the agriculture sector and by 2019 for fisheries and animal husbandry by giving financial support to farmers.

     

Participating institutions include all commercial banks, Regional Rural Banks, and state co-operative banks.

Insurance benefit:

The scheme has short term credit limits for crops, and term loans. KCC credit holders are covered under personal accident insurance up to ₹50,000 for death and permanent disability, and up to ₹25,000 for other risk.

Kisan Credit Card (KCC) offering credit to the farmers in two types viz, 1. Cash Credit 2. Term Credit (for allied activities such as pump sets, land development, plantation, drip irrigations).

Credit limitation:

Farmers can take out a loan of up to Rs. 3 lakhs and also avail produce marketing loans.

Interest rate comparison:

Banks providing Kisan Credit Cards    

Kisan Credit Card Interest Rate    Initially 7% p.a.

SBI Kisan Credit Card    Min. 2% p.a.

PNB Kisan Credit Card    Min. 4% p.a.

HDFC Bank Kisan Credit Card    Max.  16.69% p.a. | Min. 9% p.a.

Axis Bank Kisan Credit Card    8.85%, interest subvention provided

Maha bank Kisan Credit Card    Min. 7%

Indian Overseas Bank Kisan Credit Card    7% | interest subvention provided

UCO Bank    7% | interest subvention provided

Age limit /Criteria:

Age should be a minimum of 18 years of age and be a maximum age of 75 years. If you are a senior citizen, then it is mandatory to have a co-borrower who is a legal heir

Eligibility:

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 required to apply KCC :

Applying for Kisan Credit Card has some documentation requirements for Kisan Credit Card. Here is a list of documents that you have to keep ready so that you can begin with the application in an easy and hassle-free manner.

•    Completely filled and signed application form

•    ID Proof such as PAN card, Aadhar Card, Driver’s license, Passport, Voter’s ID, etc.

•    Address Proof such as your Ration cars, utility bills from the previous 3 months, PAN card, Aadhar Card, Driver’s license, Passport, Bank account statement, Voter’s ID, etc.

•    Passport size photograph of the applicant

•    Land documents

•    Other documents like security PDC in case it is requested by the bank.

Validity:

The premium is borne by both the bank and borrower in a 2:1 ratio. The validity period is five years, with an option to extend for up to three more years.

Presented by

Bhuvaneswari

Banking Student

Magme School of Banking