Kisan Credit Card (KCC) is a specially designed credit facility for farmers in India. It was introduced in 1998 by the Government of India to provide affordable credit to farmers for their agricultural and allied activities. KCC has been a revolutionary scheme for the farming sector as it allows for loan disbursal at concessional rates, easy repayment options, and flexibility in the utilisation of funds. Let us look at some features and benefits of the Kisan Credit Card online.
Features of Kisan Credit Card Online
Purpose of KCC:
The Kisan Credit Card scheme is meant to meet the short-term credit requirements of farmers for various purposes, including crop production, buying of seeds, consumption needs, post-harvest expenses, working capital for allied agricultural activities, etc.
Eligibility for KCC:
All small and marginal farmers, sharecroppers, and tenant farmers can apply for a Kisan Credit Card. The applicant must be a citizen of India and should have landholding in their name. The age of the applicant should be between 18 to 60 years.
Credit Limit:
The credit limit under KCC is based on the agricultural activity undertaken by the farmer. The credit limit ranges from Rs. 10,000 to Rs. 50,000 for marginal farmers based on the land holdings and crops grown.
Validity of KCC:
The validity of the KCC is for five years. However, it can be renewed for three years upon submission of the renewal application.
Interest Rate:
The interest rate under the KCC scheme is lower than the standard agricultural loan rate. Banks determine the interest rate from time to time, and it must be in accordance with the guidelines given by the Reserve bank of India.
Collateral Security:
For loan limits above Rs. 1 lakh for non-tie-up advances and above Rs. 3 lakhs for tie-up advances, collateral security may be obtained at the discretion of the Bank.
Utilisation of Funds:
The Kisan Credit Card provides flexibility in the utilisation of funds. The farmer can use the credit for agricultural and allied activities like purchasing raw materials, seeds, fertilisers, pesticides, machinery, tools, irrigation systems, etc.
Repayment:
The repayment of the KCC has to be carried out within 12 months or as per the repayment schedule provided by the bank.
Online KCC:
With the advancement of technology, the government and banks have launched an online KCC facility. This facility enables farmers to apply for KCC online through the website of the respective bank. In addition, the farmer can also check the application status and the sanctioned credit limit.
Mobile Banking:
The Kisan Credit Card online facility also includes mobile banking. Farmers can use their mobile phones to access their KCC accounts, check their balances, view their transactions, and transfer funds.
SMS Alerts:
Banks also provide an SMS alert facility to farmers for KCC transactions. The farmer receives an SMS for every credit or debit transaction in their account. This feature helps farmers keep track of their KCC transactions and prevent any unauthorised transactions.
E-Statements:
Farmers can also view their KCC account statements online. Banks provide e-statements that can be accessed through the bank’s website or mobile banking app.
Online Loan Application:
Apart from applying for Kisan Credit Cards online, farmers can use other loans through the bank’s portal. These loans may include long-term agricultural loans, agricultural-term loans, and equipment loans.
Ease of Documentation:
The online KCC facility reduces documentation hassle for farmers. Most of the documents required for KCC can be uploaded online. Farmers can also sign the application digitally using e-signature, eliminating the need for physical visits.
Time-Saving:
The Kisan Credit Card online facility saves time for farmers who can apply for KCC from their homes without visiting the bank branch. The online facility also reduces the processing time for KCC applications.
Benefits of Kisan Credit Card online
Transparency:
The Kisan Credit Card online facility provides transparency in the application process. Farmers can track their KCC application status and know the sanctioned credit limit. Farmers can also view their transactions and verify the interest rates charged.
Timely Credit:
One of the primary benefits of Kisan Credit Cards online is timely credit. Farmers can access credit on demand for their agricultural needs without any delay. In addition, the online facility allows farmers to apply for credit anytime, anywhere, and receive funds in less time.
Lower Interest Rates:
Kisan Credit Card online offers lower interest rates than other credit forms. This is because the banks need to set the interest rate for KCC, which must comply with RBI guidelines. As a result, farmers can save on interest costs and reduce their financial burden.
Flexible Repayment Options:
Kisan Credit Card online provides flexible repayment options to farmers for repaying the credit in easy instalments.
Multiple Withdrawals:
Farmers can withdraw credit multiple times under the scheme. This feature provides them with more flexibility in managing their cash flow.
Credit Monitoring:
Kisan Credit Card online provides a credit monitoring facility and credit card reviews to farmers. Farmers can view their credit utilisation and repayment history online and take corrective action if required. Credit monitoring helps farmers manage their credit effectively and avoid default.
Final Words
Kisan Credit Card online provides several benefits to farmers, including easy and timely credit, lower interest rates, flexible repayment options, insurance coverage, and access to agricultural inputs. In addition, the online facility promotes the reduction of the paperwork and processing time required for credit applications. This government-supported initiative aims to make credit more affordable and accessible to farmers and promote agricultural growth and sustainability.
