KCC Scheme: Get a loan of up to Rs 3 Lakh at just 4% interest with Kisan Credit Card Yojana

KCC Scheme(Kisan Credit Card Yojana): In India, the government-backed Kisan Credit Card Yojana aims to empower farmers by giving them access to timely and reasonably priced credit for their farming requirements. All Indian banks, as well as regional rural banks and cooperative banks, offer the KCC, which provides term loans and short-term credit limits for crops.

The Kisan Credit Card Yojana was introduced by the government with the intention of giving farmers prompt financial support for farming and associated activities. Through banks, this program offers a simplified credit support system. in order for farmers to receive prompt and sufficient financial support. The KCC Scheme streamlines the KCC loan application process, ensuring farmers have no trouble obtaining funds for a range of farming-related tasks.

Features of the KCC Scheme

• For convenient cash withdrawals, KCC includes an ATM-cum-debit card.
• Landholding, crops grown, and financial history are some of the variables that go into determining credit limits.
• After harvest, repayment can be made.
• In the event of a natural disaster, repayment may be converted or rescheduled.
• Every year, the credit limit rises in accordance with repayment performance.
• Effortless documentation procedure.

Advantages of the Kisan Credit Card Yojana

• With and without collateral, farmers can obtain loans up to Rs. 1.60 lakh and Rs. 3 lakh, respectively.
• Farmers can now afford credit thanks to KCC loans’ subsidized interest rates.
• The financial burden can be lessened for farmers by allowing them to repay loans in small installments.
• Government subsidies for agricultural supplies are available to KCC cardholders.
• KCC provides farmers with financial security through personal accident insurance coverage.

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Required Eligibility for the Kisan Credit Card

• Individuals between the ages of 18 year and 75 years.
• Possession of land used for farming (or, for those without land ownership, rental land).
• Bank account for savings.
• A well-organized crop production plan.
• Elderly people might need a co-borrower.
• Those Who Qualify
• Growers who work alone or in partnership (owner cultivators)
• Sharecroppers, oral lessees, and tenant farmers
• Farmer’s SHGs or JLGs (including sharecroppers and tenant farmers)

Required Documents to Apply for KCC Scheme

• Application Form.
• Two Passport Size Photographs.
• ID proof such as Driving License / Aadhar Card / Voter Identity Card / Passport.
• Address Proof such as Driving License, Aadhar Card.
• Proof of landholding duly certified by the revenue authorities.
• Cropping pattern (Crops grown) with acreage.
• Security documents for loan limit above Rs.1.60 lakhs / Rs.3.00 lakhs, as applicable.
• Any other document as per sanction.

How to Apply for Kisan Credit Card Yojana?

Online and offline applications are the two primary methods for applying for the Kisan Credit Card program. A thorough guide to both approaches is provided here:

Online Application Procedure to apply for KCC Scheme

Step 1: Visit the bank’s official website to submit an application for the KCC scheme.

Step 2: Using Bank of Baroda as an example, click Business first, and then select Farm Credit from the Agriculture drop-down menu.

Step 3: After that, select the “Apply Online” option in step three. This will take you to the application page created especially for the program.

Step 4:Now, carefully complete the online application by accurately entering all the necessary information.

Step 5: After filling out the form, carefully check all of the data you entered to make sure it is correct and comprehensive. Once you’re satisfied, submit your application electronically by clicking the “Submit” button.

Step 6: The bank will confirm receipt of your application by providing you with an application reference number. For tracking and future reference, keep this number handy.

Step 7: After processing your application, the bank will get in touch with you for next steps if you meet the eligibility requirements. This will happen within three to four working days. This could entail final approval of your KCC, creditworthiness evaluation, and document verification.

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Offline Application Procedure to apply for KCC Scheme

Step 1:First of all, decide which bank branch is most convenient for you to apply with for the KCC scheme. Think about things like familiarity and closeness.

Step 2:Then, during business hours, visit the selected bank branch. To avoid needless visits, you might want to give them a call in advance to confirm their hours.

Step 3: Tell a bank employee or customer service desk that you want to apply for the Kisan Credit Card program when you arrive.

Step 4: Request help with the KCC application procedure from the bank representative. They will give you the necessary forms and documents and walk you through the steps.

Step 5:Now, carefully complete the application forms with all the necessary information, including contact and personal details, landholding details, and any other pertinent information, with the assistance of the bank representative.

Step 6:After that, gather all necessary documentation, including proof of identity, proof of address, proof of land ownership, and any additional supporting documentation that the bank may specify. Together with these documents, submit the filled-out application forms.

Step 7:Now, verify the accuracy of all the information on the forms and documents before submitting. Verify your application’s completeness with the bank employee.

Step 8:After that, your application will be processed by the bank. For tracking purposes, they might give you an application reference number. It is best to contact thebank again within theallotted time to verify the application status.

Goals of the Kisan Credit Card Yojana

The following are this scheme’s main goals:

1. Simplified Credit Access: Compared to traditional loans, the KCC scheme makes it simpler for farmers to obtain credit by streamlining the loan application process.
2. Subsidized Interest Rates: To greatly lessen the interest burden on farmers, the government provides interest subvention on KCC loans.
3. Flexible Repayment Options: In accordance with their harvest cycles, farmers can pay back their KCC loans in manageable instalments.
4. Numerous Applications: KCC loans support a variety of agricultural requirements, such as:
5. Costs associated with cultivation (seeds, fertilizer, pesticides)
6. Post-harvest costs (transportation, storage)
7. Purchasing farm equipment
8. Investing in related industries (fisheries, dairy)
9. Consumption requirements of the household (limited extent)

Aspects of KCC Loans

1. Crop type, cultivated area, post-harvest/household expenses, crop insurance, and farm asset maintenance are some of the factors that determine the loan amount.
2. Investments in agricultural equipment, irrigation, land development, and related fields can be funded with term loans.
3. For short-term loans, banks set the repayment period according to the expected harvesting and marketing cycles.

Interest rates as well as additional fees in KCC Scheme

• Typically, KCC interest rates fall between 2% and 4%.
• The government provides incentives and interest subsidies to encourage timely repayment.
• Additional fees, such as processing fees or insurance premiums, may be imposed by banks.

KCC Loan Interest Rate Influencing Factors

Frequently Asked Questions (FAQs)