Benefits of Kisan Credit Card
The Kisan Credit Card (KCC) scheme offers several benefits to farmers:
1. Affordable Loans
Farmers can access loans with lower interest rates, enabling them to purchase necessary farming supplies like seeds, fertilizers, and pesticides.
2. Flexible Repayment
The loans come with a five-year term and manageable interest rates. Farmers can repay the loan in installments.
3. Access to Funds
Farmers can borrow up to Rs 3 lakh based on factors like their income, landholdings, and repayment history.
4. Reduced Interest
The scheme aims to support prompt loan repayment by reducing the interest rate for farmers who repay within a year.
How to Get a Kisan Credit Card
1. Application Form
To obtain a Kisan Credit Card, follow these steps:
2. Visit the Bank
Go to any leading bank in your area that offers KCC services.
3. Required Documents
Submit documents for identity verification, such as Aadhaar card, voter ID, driving license, PAN card, or passport. Also, provide passport-sized photos and land-related documents.
4. Apply Online
You can also apply online through the bank’s website. Navigate to the loan section and select “KCC.” Fill in the required information, submit documents, and click “Submit.”
5. Reference Number
After applying, you’ll receive a reference number. This number helps you track your card’s status.
Increasing Credit Limit
Initially, the credit limit is set at Rs 3 lakh for five years. To increase the limit:
1. Timely Repayment
Ensure timely loan repayment to improve your credit score.
2. Build Trust
Build a positive relationship with the bank to increase your chances of a higher credit limit.
Withdrawing Money Using Kisan Credit Card
Farmers can use the Kisan Credit Card for:
1. Cash Withdrawal
You can withdraw cash using the card.
2. Agricultural Equipment
The card can also be used to buy farming equipment.
3. Crop Insurance
Farmers with the card are eligible for crop insurance, providing coverage against unexpected crop losses.
In conclusion, the Kisan Credit Card scheme is designed to support farmers by providing accessible and affordable loans for their agricultural needs. By following the application process and maintaining good repayment practices, farmers can benefit from this valuable financial resource.