Kisan Credit Card Scheme 2023 aims to support the farmers of India, who are major contributors to the country’s growth and progress. The government recognizes the hard work of farmers who are responsible for feeding the nation and wants to provide them financial support and benefits. Both the central and state governments have implemented various programs from time to time to improve the livelihood of farmers.
The central government offers various schemes to help farmers, such as Pradhan Mantri Fasal Bima Yojana, PM Kisan Yojana, Mandhan Yojana and Kisan Credit Card Yojana. In this article, we will focus on Kisan Credit Card Scheme. Launched in 1998, the scheme is a joint effort by the Central Government, Reserve Bank of India and NABARD. It provides low-interest loans to farmers using their agricultural land as collateral.
Kisan Credit Card Yojana 2023
Kisan Credit Card Scheme 2023, also known as Pradhan Mantri Kisan Credit Card (Kisan Credit Card Yojana 2023) , was established in 1998 by the central government in partnership with NABARD and the Reserve Bank of India. The objective of this scheme is to get low interest loans from banks to farmers for their agricultural expenditure. Small farmers can get loans up to INR 3 lakh at an interest rate of just 7%. Additionally, those who repay their loan within a year get an additional 3% discount.
Reasons for starting KCC scheme
Before the Kisan Credit Card (KCC) scheme was introduced, farmers had to depend on village moneylenders for their financial needs. However, the loans provided by these moneylenders came with high interest rates, making it difficult for farmers to repay the debt and escape their clutches. In some cases, farmers had to mortgage their house property or agricultural land to get the loan.
The aim of the KCC scheme is to enable farmers to get low interest loans from banks with more favorable terms. If you are a farmer and interested in getting information about KCC scheme or loan, this article will provide you with a comprehensive overview.
Required Documents for Agricultural Loan (KCC )
Documents Required for Kisan Credit Card (KCC) Loan:
- affidavit
- aadhar card
- PAN card
- Passport size photograph
Additionally, the bank may require certain documents to be generated by the Tehsil, such as NEC or LSR (Barahsala). While a Barahsala (a 12-year search report from the Tehsil) is usually only required for loans above INR 1.60 lakh, it may still be requested in some cases. While applying for a KCC loan, farmers must provide the bank with the documents listed along with their ori, khatouni and share certificate.
Time Limit for Kisan Credit Card Yojana 2023
KCC Loan Tenure: 5 years with annual interest payments and renewal required after completion. The loan must be renewed after 5 years by submitting updated documents to the bank. However, the interest on the loan must be paid annually throughout the tenure of the loan.
Objectives of Kisan Credit Card
- To provide financial assistance to farmers for their agricultural needs
- To help farmers get free from moneylenders and get loans from banks at low interest rates
- To ensure that farmers have the necessary funds for sowing , harvesting, purchasing seeds and other farming activities
- To improve the financial stability of farmers.
- However, despite the success of the scheme, some farmers may still face challenges such as corruption and inefficiency in the loan disbursement process.
Benefits of Kisan Credit Card Yojana
- KCC loans have low interest rates, making it easy for farmers to repay the loan without any burden.
- Farmers can easily and quickly avail credit facilities from banks with Kisan Credit Card.
- The KCC card eliminates the need for multiple trips to the bank for loan disbursement and documentation, making the process convenient for farmers.
- The card also works as an ATM card, allowing farmers to withdraw cash from ATMs for their daily transactions.
- The government has also made provisions for crop insurance, making it easier for farmers to protect their crops from damage caused by natural calamities.
- Overall, Kisan Credit Card Scheme aims to improve the financial stability and livelihood of farmers, making it easier for them to meet their agricultural needs.
Kisan Credit Card Yojana Interest Rate
The interest rate for Kisan Credit Card (KCC) loans is 4-5% per annum if the loan is repaid on time. If the payment is delayed, the interest rate can go up to 12-13%. KCC is a cash credit loan, meaning it allows the farmer to make deposits and withdrawals any number of times during the loan period. The interest has to be paid within one year, and depositing it before the due date can get a subsidy of 3% of the interest amount. Failure to deposit interest on time may result in increased interest rate. It is important for the farmer to make timely payments to avoid paying high interest rates.
How is the KCC loan limit determined?
The loan limit for Kisan Credit Card is decided by the District Level Technical Committee (DLTC) based on the financial standard of the farmers for the crops grown on their land. The DLTC is headed by the District Magistrate and includes officials from NABARD, banks and state agriculture departments. The finance scale, which specifies the loan amount for each crop, is issued by the DLTC every year. The bank then decides the Kisan credit card loan limit based on this scale.
What will happen to KCC on the death of a farmer ?
In case of death of farmer, Kisan Credit Card Yojana 2023 becomes payable. Loans are usually given to the deceased farmer’s legal heirs, as indicated in the land records. If the legal heirs are unable to repay the loan, the bank has the right to recover the loan by selling the farmer’s land. It is important for farmers to keep their family members informed about their loan details and to include their names in the land records to avoid any confusion or dispute in case of their death.