Kisan Credit Card also popularly known as KCC is a loan to farmers at reduced/ subsidised rates. KCC is a joint initiative from Government of India and banking regulator RBI. Under KCC, almost all banks are advised to provide loans to farmers for purchase of agricultural items. Farmers can available such loans for purchase of seeds, fertilisers, pesticides, power tillers, agricultural equipment etc. and also use this loans for their day to day family needs.
Kisan Credit Cards were introduced with the objective of providing small credits to farmers at affordable market rates and save them from higher interest rate of money lenders.
Banks offer anything between Rs. 1-4 lakh of loan under KCC. Apart from KCC loan application form, normally banks ask for land record documentation to establish that the applicant is a farmer, Aadhaar is now a day desired, in case PAN is available that has to be produced. Before applying KCC, applicant has to ensure that he has no loan defaults from any other bank/ financial institution.
This being a loan for small and marginal farmers, loan processing fees are not charged by most banks. Government and Indian Banking Association have concurrence not to levy fees/charges on KCC processing. Government, PSU, Regional and Co-operative banks offer KCC loans in semi-urban and rural geographies and also popularise these schemes. Now a day, private sector banks also extend such loans as KCC falls under agricultural loan category. Priority sector lending is an agenda which is very much pushed by Central Government and RBI reviews all banks progress on this from time to time.
Apart from individual farmers, SHG and JLG can also apply loan under Kisan Credit Card.
Why it is called Kisan Credit Card?
As it is a loan up to a per sanctioned limit like a credit card it is called Kisan Credit Card. Some banks issue passbook for KCC so that farmers can understand details of the loan, some others issue a physical card which is more to identify the loan account details.
How to apply KCC ? If you are already having bank account, many banks are giving option to apply KCC online under their internet banking and mobile banking application. Otherwise you can visit the branch and apply there.
