Finance Minister Nirmala Sitharaman announced, in her Union Budget speech, an increase in the loan limit under the Kisan Credit Card (KCC) scheme, raising it from Rs 3 lakh to Rs 5 lakh. Currently, Kisan Credit Cards facilitate short term loans for 7.7 crore farmers, fishermen, and dairy farmers. The loan limit has been raised under Modified Interest Subvention Scheme.
What is Kisan Credit Card
The Kisan Credit Card is a government-backed initiative designed to offer short-term credit to farmers at subsidised interest rates. The Kisan Credit Card scheme aims at providing adequate and timely credit support from the banking system under a single window with the flexible and simplified procedures to the farmers for their cultivation. It also facilitates access to funds for purchasing seeds, fertilisers, and other essential farming inputs.
The Kisan Credit Card is a magnetic stripe card with PIN (Personal Identification Number) with an ISO IIN (International Standards Organization International Identification Number) to enable access to all banks ATMs and micro ATMs.
The validity period of the Kisan Credit Card is 5 years. The tenure one does depends on the type of activity it is planned to use the money for.
How to apply for Kisan Credit Card?
These are the steps listed by the government of India to avail a Kisan Credit Card:
Visit the website of the bank you wish to apply for the kisan credit card scheme.
From the list of options, choose the Kisan Credit Card.
On clicking the option of ‘Apply’, the website will redirect you to the application page.
Fill the form with the required details and click on ‘Submit’.
On doing so, an application reference number will be sent. If you are eligible, the bank will get back to you for the further process within 3-4 working days.
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