KCC stands for Kisan Credit Card. It is a type of credit card that is offered to the farmers by the government of India. The main objective of introducing this card was to provide financial assistance to the farmers so that they can meet their agricultural needs. We will discuss everything about Kisan Credit Cards including its features and benefits.
Commencement of KCC
KCC was introduced by the government of India in August 1998. The main objective of introducing this card was to provide financial assistance to the farmers so that they can meet their agricultural needs. KCC provides easy and affordable credit to the farmers.
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Features of KCC
Some of the features of KCC are as follows:
– KCC can be used for various purposes such as agriculture, livestock, etc
– KCC comes with a credit limit of up to Rs. 3 Lakhs
– KCC has a flexible repayment period
– KCC offers an interest-free credit period of up to 50 days
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Benefits of KCC
Some of the benefits of KCC are as follows:
– KCC helps in meeting the financial needs of farmers: KCC helps the farmers to meet their various agricultural needs such as purchasing seeds, fertilisers, pesticides, etc
– KCC offers easy and affordable credit to the farmers: KCC comes with a credit limit of up to Rs. and offers an interest-free credit period of up to 50 days. This makes it easy and affordable for the farmers to obtain credit
– KCC helps in increasing the production of crops: KCC helps the farmers to purchase quality seeds, fertilisers, and pesticides. This, in turn, helps in increasing the production of crops
– KCC comes with a credit limit of up to Rs 10,000 – Rs 50,000: KCC offers a credit limit of up to Rs. 10 to 50 thousand which helps the farmers to meet their agricultural needs
– KCC has a flexible repayment period: KCC offers a flexible repayment period of up to 36 months. This helps the farmers to repay the loan amount without any difficulty
– KCC offers an interest-free credit period of up to 50 days: KCC offers an interest-free credit period of up to 50 days. This helps the farmers to save on the interest amount
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Objectives of KCC
The Kisan Credit Card (KCC) scheme was launched by the Government of India in 1998-99. Following are the objectives of this scheme:
– To provide timely and adequate credit to farmers for their cultivation needs
– To help farmers tide over the period between planting and harvesting of crops
– To meet the working capital requirements of farmers
– To encourage farmers to adopt modern technology and improve practices in agriculture
Eligibility for KCC
The Kisan Credit Card is available to all farmers including small and marginal farmers, tenant cultivators, sharecroppers, and landless labourers engaged in agriculture. KCC holders are also eligible for crop insurance cover under the Pradhan Mantri Fasal Bima Yojana (PMFBY).
How can someone apply for KCC?
Kisan Credit Card can be applied through any Kisan Call Centre (KCC) of the bank. KCC is a 24×365 toll-free helpline service for Kisan. The Kisan can also visit the nearest branch of the bank and approach the customer service desk for the KCC application.
Limits of KCC
Following is the limit criteria set under KCC:
– The KCC limit is Rs. 50,000/- for individuals and up to Rs. one lakh for groups
– For Kisan Credit Card the limit is Rs. one lakh
– KCC limit for institutional borrowers is Rs. five lakh and for social sector institutions it is Rs. one crore
– Kisan Credit Card limit can be enhanced by Rs. 50,000/- provided the borrower has repaid at least 75% of the previous Kisan Credit Card limit
– Kisan Credit Card limit can also be increased by Rs. one lakh provided the borrower has repaid at least 50% of the previous Kisan Credit Card limit
– Kisan Credit Cardholders can also avail of an overdraft facility of Rs. 5000/-
– Kisan Credit Cardholders can also avail of an additional loan of Rs. one lakh under the Kisan Vikas Patra (KVP) Scheme
– Kisan Credit Card limit for group borrowers is Rs. two lakh and for social sector institutions it is Rs. five crores
Conclusion
The Kisan Credit Card has many features that will benefit farmers and their families. It is important for them to understand all of the benefits and how to use the card before they sign up. We have highlighted some of the most important aspects of the card in this article, and we encourage you to read more about it.
