Union Finance Minister Nirmala Sitharaman announced on May 14 a Rs 2 lakh crore concessional credit boost to 2.5 crore farmers through Kisan credit cards, which would cover fishermen and animal husbandry farmers too.
So, what are Kisan credit cards?
The Kisan credit card is a government scheme that lets farmers take loans at concessional rates to save them from the exorbitant rates usually charged by moneylenders in the unorganised sector. Sometimes the interest rate offered under this scheme can be as low as two percent. Besides, the government also allows the beneficiaries a longer repayment period that is based on the harvesting or marketing period of the crop for which they had taken the loan. The farmers are also awarded a crop insurance scheme under this.
Who can apply for a Kisan credit card?
Any person associated with farming and agriculture is eligible to apply for this scheme, including those who cultivate on other people’s land.
The applicant must be aged between 18 to 75 years; for those aged above 60 years, having a co-applicant is mandatory.
How can one apply for Kisan credit card?
To avail this scheme, the applicant will first have to visit the website of a bank of their preference that offers the same, such as State Bank of India, Axis Bank, Indian Overseas Bank, Bank of India, and HDFC Bank, and download and print the application form.
The form will be available on the KCC section of commercial bank websites in English and Hindi, which will require basic information such as crop being sown and land record, etc. Once filled duly, click on the submit button. An application reference number will be generated for future reference.
The applicant will have to submit the following documents at a nearby bank branch with certain documents to prove their identity, such as a copy of PAN card or Aadhaar card; a job card issued by MNREGA and voter’s ID card are also valid. For address proof, the same should suffice, alongside ration card, bank account statement, and utility bill that is not more than three months old.
Other necessary documents would include, land papers, a passport size photo of the applicant, and additional requests made by the issuing bank, including a security PDC.
Once a loan officer sanctions the loan amount, the card will be dispatched to the applicant’s address. Thereafter, all cardholders will be able to purchase items against the credit limit of their card and the government will charge interest only on the amount of credit taken.