How to benefit from the Kisan Credit Card scheme?

Summary: The Kisan Credit Card helps farmers acquire short-term loans to meet their farming expenses. Click here to find out how to benefit from the Kisan card scheme!

24 Aug 2022 by Team FinFIRST

Two farmers usinf their Kisan Credit Card

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The Kisan Credit Card Yojana offers short-term quick loans to farmers across India to meet their emergency fund requirements during crop cultivation, harvesting, etc

Launched in 1998, the Kisan Credit Card (KCC) Yojana provides short-term loans to the farmers to meet their urgent expenses arising during the cultivation and for maintaining their farming equipment. It allows farmers to avail of credits at low-interest rates from banks and financial institutions.

The scheme is also known as Pradhan Mantri Kisan Credit Card Yojana, managed by the commercial, state co-operative banks and regional rural banks. The article below brings various benefits of the Kisan Credit Card Yojana.

What is Kisan Credit Card Yojana?

The Kisan Credit Card Yojana helps farmers acquire short-term loans to meet their farming expenses. Card issuing banks decide the credit limit based on cultivated crops, maintenance expenses, and the financial margin. A credit limit of ₹10,000 to ₹50,000 is offered to marginal farmers. Kisan Credit Card Yojana proves to be beneficial to farmers for supporting their farming effectively.

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To know more on KCC benefits, key features and how to apply, one can check at IDFC FIRST Bank KCC. The scheme offers a pre-sanctioned limit for 5 years with one-time documentation for amount up to Rs. 1 Cr at competitive interest rate.

Benefits of Kisan Credit Card Yojana

The Kisan Credit Card Yojana is exempted from standard credit card interest rates. The cardholder can avail of interest rates ranging between 2% to 7%. In addition, farmers can repay their loans based on the harvesting period of the crops for which they receive the loan. Following are the other important benefits of Kisan Credit Cards.

The banks offer ATM cum credit cards that they can also use to withdraw funds from ATMs and acquire funds on credit.
The card offers a convenient repayment period of up to 12 months to easily pay off the loan amount.
Based on the repayment history, the credit limits can also be increased. Farmers with decent repayment records can apply for a higher credit limit to cope with the inflating and farming expenses.
The scheme allows farmers to reschedule their repayments if their crops are damaged due to unforeseen events and natural calamities. In such cases, they get the flexibility to repay their loans only after successful harvesting.
The credit card is valid for three years without any requirements of annual fee or membership charges.
As a Kisan Credit Card holder, you also get insurance benefits of up to ₹50,000 due to accidental death, permanent disabilities, and other financial losses arising from accidents.
In addition to the benefits mentioned above, the Kisan Credit Card is easy to obtain with a streamlined application and approval process.

Kisan Credit Card Yojana offers quick and convenient loans to farmers with interest rates starting from 2% to 7%.

Objectives of Kisan Credit Card Yojana

Following are the objectives of the Pradhan Mantri Kisan Credit Card Yojana.

Reduce banks' transaction costs
Reduce the number of operating branches of the bank
Increase the business of the banks
Simplify the documentation and application process for the loans.
Simplify the loan approvals and disbursement process
Improve the recycling of funds
Better loan recovery

With a Kisan Credit Card scheme, individuals involved in farming can acquire short-term loans to meet their cultivation and machinery expenses. They can repay the loans in convenient instalments or after successful harvesting. The scheme provides an easy application and approval process for quick disbursal of funds.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirst.bank.in for latest updates.