Credit lines have been extended to farmers ever since 1998 via different government initiatives. In June 2019, the Government of India took up the aim of reaching out to 1 Crore farmer families in 100 days. Kisan Credit Card is one such initiative that targets to aid farmers with finances in the event they require sudden monetary help.
What is Kisan Credit Card?
Farming industry depends on numerous small scale financial investments. From buying seeds to irrigational arrangement, basic tools to storage costs, numerous expenses require fast monetary investment especially since farming is very environment dependent. KCC aims to solve this financial requirement of farmers so that their whole process of harvesting remains unharmed. This credit line offered by Government of India offers financial aid to meet all farming requirements with essentially convenient repayment schemes.
Crucial to note, this credit line is not quite like other credit cards which are offered by different financial institutions. While credit lines like Bajaj Finserv RBL Bank SuperCard and its likes offer numerous discounts as well as reward points, Kisan Credit Card scheme primarily offers fast cash for purchases.
What does Kisan Credit Card offer?
There are numerous features which are particular to Kisan Credit Card. Farmers trying to understand what is KCC must understand these specific features to completely recognise how this scheme is tailor-made for them. Vitally, these ensure farmers get fast and adequate funds for their farming expenses.
- Expandable credit limit – The credit limit on these cards is generally expandable depending on the income of a farmer. This allows farmers to invest in any area of farming be it for seeds or for post-harvest expenses.
Farmers can consider the tips to increase their credit card limit and make higher spends with their Kisan Credit Card. Usually, ATM facility is also provided on them.
- Low interest rates – These cards have low interest rates which ensure lower financial burden on farmers.
- Flexible repayment – Natural factors affect the harvest and its season. Therefore, a flexible tenure for repayment is granted which can extend to the post-harvest time.
- Insurance cover: An insurance cover in case of natural calamity and crop damage is provided. Additionally, the individual is also insured from personal accidents.
- Special discounts: Few special discounts from select vendors are also offered on these cards.
How to apply for Kisan Credit Card?
Applying for KCC is especially easy and convenient along with fast disbursal. Firstly, the following eligibility for a credit card must be checked.
- Age must be between 18 years and 75 years.
- For individuals above 60 years, legal heir becomes co-borrower.
- All farmers irrespective of whether they are tenants, share-croppers, individuals, etc. can apply for such credit facility.
- Joint liability farming groups can also apply for such credits.
Once eligibility is confirmed, the following documents must be arranged for completing the approval process of KCC.
- Filled in application form.
- Government issued ID and address proof.
- Documents related to land holding.
With minimal documentation and easy eligibility criteria, Kisan Credit Card ensure farmers have adequate money to fulfil all their farming necessities.
However, it is important for farmers to learn how to read their credit card statement correctly as it ensures they do not fall behind in their repayment and consequently do not have to pay any extra charges as penalty. Once they have a thorough understanding of it all, the application itself can be done easily online.
They can also apply for regular credit cards online. NBFCs like Bajaj Finserv provide pre-approved offers on online applications that make availing credit cards quick and easy. Such offers are available on numerous financial products like credit cards, home loans, personal loans, business loans, etc. You can check your pre-approved offer by providing your name and phone number.
It also important customers considering “what is KCC” understand that this is not like other credit cards. While this card provides immense benefits to farmers on the one hand, it cannot provide the usual advantages of credit cards. The features of discounts on purchase or collection of reward points for later use are typically not provided on Kisan Credit Cards. As a result, it important farmers learn how to choose the right credit card for them in case they feel they also requires the additional benefits of a credit line.