PM Kisan Credit Card KCC is a credit card specially launched by the government for short term financial needs of farmers. As we all know that the agriculture industry is the backbone of the Indian economy. Thus the financial stability and growth of farmers are of utmost importance. Farmers are usually dependent on private lenders for loans. Due to the higher interest rate, they fall into a debt trap. To help farmers in getting low-interest loan PM and financial support the government has launched PM Kisan Credit Card (Pm KCC). This credit card is available at all public sector banks including SBI. Here is detail information about PM Kisan Credit Card including a method to apply for the new KCC.
What is PM Kisan KCC Yojana 2020?
PM Kisan KCC Yojana 2020 is kisan credit card offered to farmers across the country via public sector banks, cooperative banks associated with the government of India. The card can be used with a specific card limit. The minimum card limit starts from Rs.25000 and the upper limit is decided based on income and other factors. The amount withdrawn via this card needs to be repaid in twelve months. The credit limit of this card can be increased or decreased.
The prime objective of this card is to provide financial support to the farmers. This is to make farmers self-dependent on agriculture income.
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Key Features of PM KCC – Kisan Credit Card
- Free card for farmers covered under PM Kisan Samman Nidhi. Simple interest of 7% per annum will be charged for one year or up to repayment due.
- In the case of non-repayment within the due date, a higher interest rate is applicable.
- Farmers can get loan up to 1.6 Lakh without collateral under this scheme.
- Notified crops and notified areas are covered under crop insurance for all KCC loans.
- The repayment period is decided based on the harvesting and marketing period of the crop.
- The credit facility or loan can be used for purchase of fertilizer, seeds, pesticides, agriculture equipment etc.
- This card provides additional personal accidental insurance.
Documents and Eligibility for Kisan Credit Card
You need following documents to get KCC.
- Duly filled application form.
- Identity proof – Aadhaar Card/PAN Card/Passport
- Address proof – Aadhaar Card/PAN Card/Passport/Voter ID Card
- Documents that proves that you are a farmer and holding agriculture land
- Any other documents required by the bank
Eligibility requirement for getting PM-KCC are given below.
- You should be register farmer under PM Kisan Sanman Nidhi.
- Your age should be above 18 years and below 60 years.
- In addition to farmer, a joint cultivator can also get KCC.
- Tenants who has taken land on lease for cultivation are also eligible.
- Self-help groups or joint liability group farmers are also eligible for this yojana.
Benefits of KCC
There are multiple benefits of this scheme. Under this scheme, a farmer can get a loan without any collateral. The interest rate applicable to the amount up to 1.6 Lakh is very low. The repayment duration offered to a farmer under this scheme is very long. Farmers can get a loan of a higher amount by submitting additional collateral. Apart from farming one can get a loan for fish farming and animal husbandry.
This amount taken via this scheme can fulfill the working capital requirement as well as other needs of farmer. The additional crop protection insurance act as a contingency plan for the farmers.
How to Apply for PM Kisan Credit Card?
A step by step process to apply for PM Kisan Credit card is given below.
Offline Process
You need to submit the application form to apply for this scheme. You can download application form from the online website pmkisan.gov.in. On this website, you will get the option to Download KCC Form. Refer to the image screenshot given below.
On clicking download KCC form, you will be able to download the application form. The form contains the detail about loan amount, detail of current loan, ownership of land and crop details. You need to fill-up the form and visit the participating bank of your preference. You need to meet the in-charge of the credit department and explain your KCC requirement. Submit the form to the bank officer. The bank officer will provide you acknowledgment of your application.
The time period for processing your application is 3-4 days. You will get a credit card at the registered address. You need to submit the eligibility documents along with the application.
Online Process
The ministry of agriculture and farmer welfare has started a website that provides an online facility for the applying of KCC. You can apply as well as view the status of KCC online on this website.
In addition to this, few banks also offer the facility of applying for a Kisan Credit Card online. You just need to fill up an online form mentioning appropriate details. You also need to upload a scanned copy of various documents.
Once you are done with documentation. You need to submit the application form. You will receive an Application reference number (ARN) once your application is successfully submitted. On approval of your application, a kisan credit card will be dispatched to the registered address. It usually takes a one-week time for getting KCC.
Final Words
PM Kisan Credit Card is a very good option for the farmer to fulfill the short-term finance requirement of farmers. The interest rate is very low and the scheme is backed by the government. The scheme has multiple benefits for the farmers.