India remains mainly an agricultural based economy despite the tremendous growth of her industrial sector. So to help the farmers, the backbone of our country’s economy, Government of India launched the Kisan Credit Card scheme in 1998.
The Kisan Credit Card scheme provides short term credit to the farmers to help them meet various financial needs. It can also be used to meet other requirements as per the borrower’s discretion. They can apply for the Kisan Credit Card scheme to fulfil agricultural needs including –
- Expenses required for cultivation, buying of seeds, animal husbandry, fish farming etc.
- Market-related expenses as required by farmers.
- Expenses required after the harvesting season
- The cost of purchasing tools and equipment.
- Day to day expenses.
- Insurance coverage to cover personal and asset related accidents.
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Who is eligible to avail this scheme?
Individual who can avail these schemes are –
- Individuals who are tenant farmers or share croppers.
- Individuals who are owner cultivators. Owner cultivators can also apply for this scheme as joint borrowers.
- Under the KCC scheme, people who work in the animal husbandry and fishery sector can also apply.
- The age requirement to be eligible for this scheme is 18 to 75 years.
- A co-borrower who is a legal heir is compulsory when the main borrower is above 60 years.
Documentation required to apply for the Kisan Credit Card –
- Application form with details like name, address, contact number entered.
- A proof of identity and address (recognised by the Government of India) like Voter ID card, Aadhaar card, PAN card, passport and driving license.
- Documents related to farmland.
Besides helping the farmers to meet their agriculture related expense, it also has other benefits. These include –
- In case of natural calamities like droughts and floods, the repayments of loans availed through Kisan Credit Card can be rescheduled.
- Issuing bank can increase the credit limit as per their discretion to facilitate any unforeseen changes like cropping pattern changes, increase in day to day expenses, etc.
- With the KCC scheme repayment of the loan is done at the end of the harvest season for short term loans, and long term loans are payable within five years of availing credit.
The interest charged on Kisan Credit Card is usually low and it’s charged at the issuing institution’s discretion. Kisan credit card has no doubt made life a lot easier for those working in the agricultural sector since its main feature is to meet expenses related to farming. Apart from that, an individual can also avail normal credit card to meet other additional expenses.
NBFCs and financial institutions offer an array of features which are beneficial to those availing credit cards. For instance, RBL Bank SuperCard offers several industry first features like-
- Availing emergency personal loan by converting the unused credit limit into cash. Except a processing charge of 2.5%, no other interest is charged for up to ninety days.
- With Bajaj Finserv RBL Bank SuperCard, one can withdraw cash from ATMs with zero interest charged for up to 50 days.
- The borrower can earn reward points with every transaction. There are multiple things one can do with reward points earned on credit cards and save a considerable amount of money
Aside from the above mentioned points, there are other advantages of Bajaj Finserv RBL Bank Credit Card.
Kisan Credit Card scheme has been a huge advantage to the agricultural sector. However it does not have the usual advantages of a regular credit card. A customer can use his/her credit card in numerous ways and do more with it like availing discounts and reward points.