“Get up to 4% interest Kissan Credit Card subsidy on Kisan Credit Card (KCC) loans in India. Learn eligibility, benefits, and how to apply for KCC schemes.”
Table of Contents
Introduction
The Kisan Credit Card (KCC) scheme is a government initiative in India aimed at providing farmers with timely and adequate credit support for their agricultural needs. The scheme is designed to help farmers access short-term loans for cultivation, post-harvest expenses, and other farming-related activities. Under the KCC scheme, farmers can also avail subsidies and benefits, particularly in the form of interest subvention.
Subsidies and Benefits on KCC:
- Interest Subvention:
- Farmers who repay their KCC loans on time are eligible for an interest subvention (subsidy) of 2% per annum.
- An additional 3% interest subvention is provided to farmers who repay their loans promptly, making the effective interest rate 4% per annum (as of recent updates).
- Prompt Repayment Incentive:
- Farmers who repay their loans within the due date are eligible for the additional 3% interest subvention, reducing the overall cost of borrowing.
- Loan Limit:
- The KCC provides a credit limit based on the farmer’s landholding and cropping pattern. The limit can be used for various agricultural purposes, including purchasing seeds, fertilizers, and other inputs.
- Coverage for Post-Harvest Expenses:
- The KCC also covers post-harvest expenses, including transportation, storage, and marketing of produce.
- Insurance Coverage:
- Some KCC schemes are linked with crop insurance (e.g., Pradhan Mantri Fasal Bima Yojana), providing additional financial security to farmers.
- Flexible Repayment Options:
- Farmers can repay the loan based on the harvesting season, ensuring flexibility in repayment schedules.
- Additional Benefits for Dairy and Fisheries:
- The KCC scheme has been extended to include dairy and fisheries farmers, providing them with similar credit and subsidy benefits.
Conclusion
In conclusion, the Kisan Credit Card (KCC) scheme is a highly beneficial initiative by the Government of India to support farmers by providing them with affordable and timely credit for their agricultural and allied activities. Key features like interest subvention, prompt repayment incentives, and flexible repayment options make it a farmer-friendly financial tool. The scheme not only reduces the cost of borrowing but also ensures financial inclusion for small and marginal farmers, as well as those involved in dairy, fisheries, and other allied sectors.
Kissan Credit Card Interest Rates (7% Reduced to 4%)
Frequently Asked Questions (FAQs) about the Kissan Credit Card Subsidy (KCC) scheme:
What is the Kisan Credit Card (KCC) scheme?
The KCC scheme is a government initiative to provide farmers with timely and affordable credit for agricultural and allied activities, such as crop production, post-harvest expenses, and other farming needs.
Who is eligible for the Kisan Credit Card?
Individual farmers, joint borrowers, tenant farmers, and farmers involved in animal husbandry, fisheries, and other allied activities are eligible.
Which banks offer the Kisan Credit Card?
Most public sector banks, private banks, regional rural banks (RRBs), and cooperative banks offer the KCC scheme.
What is the purpose of the Kisan Credit Card?
The KCC provides short-term credit to farmers for purchasing seeds, fertilizers, pesticides, and other inputs, as well as covering post-harvest expenses and other farming-related costs.
What is the loan limit under the KCC scheme?
The loan limit depends on the farmer’s landholding, cropping pattern, and scale of farming. It is determined by the bank based on these factors.
What is the interest rate on Kisan Credit Card loans?
The interest rate is generally 9% per annum. However, farmers who repay on time receive an interest subvention of 2%, reducing the effective rate to 7%. An additional 3% subvention is available for prompt repayment, bringing the effective rate down to 4%.
Can the KCC loan be used for non-agricultural purposes?
No, the KCC loan is specifically designed for agricultural and allied activities and cannot be used for personal or non-farming purposes.
Is there a repayment grace period under the KCC scheme?
Yes, farmers are given a repayment period based on the harvesting cycle, usually up to 12 months.
What is the interest subvention under the KCC scheme?
Farmers receive a 2% interest subvention on their loans. An additional 3% subvention is provided for timely repayment, making the effective interest rate 4% per annum.
Are there any subsidies for crop insurance under the KCC scheme?
Yes, the KCC can be linked with crop insurance schemes like the Pradhan Mantri Fasal Bima Yojana (PMFBY), which provides subsidized insurance coverage for crops.
Can dairy and fisheries farmers avail of the KCC scheme?
Yes, the KCC scheme has been extended to include dairy, fisheries, and animal husbandry farmers.
How can I apply for a Kisan Credit Card?
You can apply at your nearest bank or financial institution offering the KCC scheme. Required documents include land records, identity proof, and photographs.
What documents are required for a Kisan Credit Card?
Common documents include:
Aadhaar card
Land ownership or cultivation proof
Passport-sized photographs
Bank account details
How long does it take to get a Kisan Credit Card?
The processing time varies by bank, but it typically takes 2-4 weeks after submitting all required documents.
Can the Kisan Credit Card be renewed?
Yes, the KCC can be renewed after the repayment of the loan. Farmers need to contact their bank for renewal and reassessment of the credit limit.
By: Cibilfree
Pingback: Kisan Credit Card Limit: From 50,000 To 5,00,000