Kisan Credit Card

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 and agricultural needs. 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. 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. 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. 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).



How To Get The Kisan Credit Card Loan?


How To Get The Kisan Credit Card Loan – Just like all the major parts of the world, India’s financial status also depends on agriculture directly or indirectly. And the farmer is one of the most important assets of our country. There is also a well-known saying in Hindi – “Jai Jawaan, Jai Kisan” which correctly defines the importance of an army man as well as a farmer for the development of a country. But as we all know, the condition of the farmers in our country is not good. That’s why the Indian government keeps on introducing various new schemes for the welfare of the farmers of our country. One such scheme is the Kisan Credit Card Scheme (KCC) which has been introduced in order to provide financial help to the farmers in the country.


History of Kisan Credit Card Loan

The Kisan Credit Card Scheme was first started in August 1998 by the NDA government in the cultivation season in order to cope with the loan needs of the farmers. This scheme was first presented in the budget 1998-99 by finance minister Yashwant Sinha which proved to be a lot beneficial for all the small and big farmers of the country. As a result, after consultation with major banks based on the Gupta Committee by NABARD, the ideal Kisan Credit Card Scheme (KCC) was prepared. So, by the end of this article, you would be knowing many new things such as What is KCC, how much interest does it takes from the farmers on loans issued, how can you apply for this loan ?, and other valuable information about Kisan Credit Card Scheme.


What exactly is the Kisan Credit Card Scheme?

I think every one of us would be knowing what is Kisan Credit Card Scheme (KSS) but still, for those of you who don’t have any clue about what is KCC, don’t worry, all your doubts would be gone by the end of this article. The Kisan Credit Card scheme was introduced by the Indian government to fulfill the needs of the farmers in the cultivation season of the crops. This scheme was mainly introduced in order to provide financial help to poor farmers of the country at reasonably low rates of interest. This scheme was prepared by National Bank Agricultural And Rural Development on the recommendations of the Reserve Bank Of India (RBI). This scheme came into action in all banks including public banks, co-operative banks, and regional rural banks in 1998. Kisan Credit Card (KCC) is a credit card especially for farmers with the help of which they can get a loan at very less rate of interest. They have to pay the interest in only that amount, which they had borrowed from the bank.