About Kisan Credit Card (KCC)

kisan-credit-card
KCC

KCC: Kisan Credit Card

The KCC or commonly known as Kisan Credit Card (‘किसान क्रेडिट कार्ड’, ‘कृषक शाख़ पत्र or Krishak Shakh Patra’ in Hindi) is a very important and unique scheme launched by the government through different banks in India to aid farmers financially for commercial and non-commercial farming. It is a very good scheme for all the small and marginal farmers. Using KCC farmers get financial help from banks at right time for current season farming. It is provided by the banks for field and horticultural crops. Burrower is free to deposit and withdraw funds from account.

INDEX

COUNTRYIndia
LAUNCHED IN1998
RECOMMENDATIONR. V. Gupta
NAMEKisan Credit Card, abbreviated as KCC.
TYPEGovernment Scheme. Term Loan.
FORAll Categories of Farmers.
Related Bank(s)Recognised banks by government of India. For example- State Bank of India, Rural Bank, APEX Bank etc.

Criteria/Eligibility Criteria

Type of Farmer: Scheme is available for all categories of farmers i.e., small, marginal and big farmers.

Record: A farmer should have good track record. Branches of that particular bank should have faith and satisfaction on farmer.

Credit Limit: Credit limit is fixed on>

Season: Different credit limits are fixed for different cropping seasons i.e., Kharif, Rabi, Zaid and long duration crops.

Type of crop: Credit is more for horticultural crops than agricultural or field crops.

Crop pattern: Mixed or single crop.

Land area: Credit increase with the area of land.

Type of Farming: Scale of credit is more for high-tech farming e.g., greenhouse, shadnet, drip and sprinkler irrigation etc.

Also Read: Government Departments Working for Farmers

Procedure

The procedure includes following steps:

  • Collection of documents.
  • Approaching bank officials.
  • Submition of documents.
  • Online entry of data.

Collection of Documents

Necessary Documents

Following are the necessary documents:

  1. B-1.
  2. P-2.
  3. Bank Passbook.
  4. ADHAR Card.
  5. Passport Size Photo.
  6. Certificate by Government Accountant i.e., Patvari.

B-1: Photo copy of B-1.

P-2: Photo copy of P-2.

Bank Passbook: Photo copy of bank passbook of related bank.

Passport Size Photo: Black and white or colour photo of the farmer.

Approaching Bank Officials

A customer of bank account holder should talk with a bank official. Bank managers are responsible for approving cases.

Submission of Documents

Required documents are submitted by the farmers at regional bank office. All documents are reviewed and certified by the bank officials. Application is approved by the branch manager after successful verification of valid documents.

Online Entry

Online entry is done by the bank staffs.

Also Read: What is CHAMPS? Online Application Procedure.

Security(s)

Following securities are applicable:

  1. Loan agreement.
  2. Hypothecation of crop.
  3. Hypothecation of crop and mortgage of land.

Withdrawl

Farmers can withdraw money using KCC as per need at right time.

Repayment Period

Repayment is based on harvesting and marketing of the product.

Also Read: Drip Irrigation System: Installation, Government Schemes.


Miscellaneous

  1. The credit extended under the KCC Scheme is a revolving cash credit.
  2. Any number of drawals and repayments within the limit is permitted.
  3. It also covers contingent needs such as medical, education etc.
  4. KCC also covers personal accident insurance in some case with premium payable.
  5. Bank also provide cheque book to literate KCC holders.
  6. Bank can can also provide ATM cum debit cards to KCC holders.

Also Read: KCC: Kisan Call Centre


Explanation of Post Related Words

B-1

B-1 is the original document of a piece of land of group of land with their measles numbers (Khasra Number or खसरा संख्या). A B-1 includes all measles numbers and shows total land area of a farmer.

P-2

P-2 is the specific page which shows a particular piece of land with total area of that piece of land with khasra number.

High-tech Farming

The high-tech farming includes advance technologies in farming e.g. protected cultivation and advance irrigation system.

Khasra Number

Khasra number is a specific number given to a piece of land. Each piece of land has a unique khasra number. Many times a big field had sub measles numbers. For example- If 102 is main measles number, then क/102, ख/102 or 44/102 , 43/102, 45/102 will be sub measles numbers.

Marginal Farmer

A farmer with less 2.5 acres of land is classified as marginal farmer.

Small Farmer

A farmer with 2.5 to 5.00 acres (less than 5 acre) of land is classified as small farmer.

Big Farmer

A farmer with more than 5 acres of land is classified as big farmer.

Frequently Asked Questions

Question 01. For how many year(s) a KCC will be valid?

Answer: It is valid for up to 3 years.

Question 02. What is the review period of a KCC?

Answer: It is reviewed yearly.

Questions 03. What is the interest rate for small farmers?

Answer: Interest rate for Short Term loan is 0%. Interest rate for long term loan is up to 3.5% or more.

Questions 04. What is the interest rate for marginal farmers?

Answer: Interest rate for Short Term loan is 0%. Interest rate for long term loan is up to 3.5% or more.

Questions 05. What is the interest rate for big farmers?

Answer: Interest rate for Short Term loan is 0%. Interest rate for long term loan is up to 3.5% or more.

Question 06. What is the margin?

Answer: No margin in case of fixed limit.

Question 07. What are conversion of crop loan to term loan?

Answer: Crop loans are converted into terms loan in disaster prone areas such as flood, cyclone drought etc. Only main amount is converted into term loan.

Question 08. What is repayment period in case of conversion of crop loan to term loan?

Answer: Repayment period is normally 3 to 5 years.


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1. Author and Content Writer. 2. Agriculture Consultant and Farmer's Trainer. 3. Agriculture Entrepreneur.
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