The Kisan Credit Card

Benefits and Eligibility Criteria for the KCC Scheme

• The primary objective of the KCC Scheme is to enable farmers to have access to timely and sufficient credit for their agricultural activities, reducing their dependence on non-institutional sources of credit and preventing them from falling into the clutches of moneylenders
• All farmers, including individual farmers, joint cultivators, tenant farmers, sharecroppers, etc., are eligible to apply for a Kisan Credit Card
• The credit limit under the KCC is determined based on the scale of finance, which is the cost of cultivation per hectare for various crops. The credit limit is fixed on the basis of the agricultural practices in the region
• The KCC provides credit for various agricultural needs, including crop production, post-harvest expenses, working capital for maintenance of farm assets and activities, and other consumption needs
• Farmers can withdraw money from the credit limit as per their requirements. It provides flexibility in withdrawing funds, making it convenient for farmers to manage their finances
• The interest rates for KCC loans are often lower compared to other sources of credit available to farmers. The interest rate is also sometimes subsidized by the government to make it more affordable for farmers.
• The repayment of KCC loans is generally linked to the harvesting and marketing period of the crops. Farmers have the flexibility to repay the loan after the sale of their produce
• The Kisan Credit Card has a validity period, and it needs to be renewed based on the farmer’s credit needs and performance

Eligibility Criteria is as follows for the Kisan Credit Card Scheme:

• The eligibility criteria for the Kisan Credit Card (KCC) Scheme in India may vary slightly between different banks and financial institutions that offer the scheme. However, there are some common eligibility criteria that are generally applicable
• Individuals engaged in agriculture, including farmers, sharecroppers, tenant farmers, oral lessees, and joint cultivators, are eligible
• Individuals should own the land they cultivate or have the right to cultivate the land. Tenant farmers and sharecroppers can also apply, provided they have a legally valid agreement
• Applicants should have a satisfactory credit history. This may be assessed based on the repayment behavior of previous loans, if any
• There is typically no specific age limit for availing the KCC. However, applicants should be capable of entering into a legal contract
• Applicants should be residents of the area where they are applying for the Kisan Credit Card
• Individual farmers, joint cultivators, and members of joint liability groups are eligible. In some cases, farmers’ groups or Self-Help Groups (SHGs) may also be eligible