Kisan Credit Card

A Kisan Credit Card is a credit card to provide affordable credit for farmers in India. It was started by the Government of India, Reserve Bank of India (RBI), and National Bank for Agriculture and Rural Development (NABARD) in 1998-99 to help farmers access timely and adequate credit.

The Kisan Credit Card allows farmers to have cash credit facilities without going through time-consuming bank credit screening processes repeatdly. Repayment can be rescheduled if there is a bad crop season, and extensions are offered for up to four years. The card is valid for five years and subject to annual renewals. Withdrawals are made using slips, cards, and a passbook.[1]

KCC services offered by IDBI

All farmers, owner cultivators, tenant cultivators, share croppers and individual farmers having agreement with institution are eligible for the card. Most banks in India that offer agricultural finance offer the Kisan Credit Card. Under the scheme, Branches may issue Kisan Credit Cards to the farmers who are otherwise eligible for sanction of short term credit for crop production, allied activities and other non-farm activities.

Details

The card is valid for five years, of which crop loan and working capital components have to be renewed annually. Limit of Kisan credit card depend upon scale of finance, which is decided by lead district bank and it varies from place to place.

Eligibility: Individual

Repayment period: With-in A MAXIMUM OF 12 MONTHS.

Collateral Security: Registered mortgage of land in case loan is above Rs. 100000/- and hypothecation of crops to be raised.

See also

References

  1. ↑ http://www.ccsindia.org/ccsindia/policy/live/studies/wp0011.pdf

External links

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