The Kisan credit card scheme, or the KCC scheme, was launched in 1988 by the reserve bank of India along with the national bank for rural and agriculture development (NABARD) to provide loan relief to small farmers. Earlier, there was an informal source through which the small farmers reached for the loan. Later, after introducing the KCC scheme, the farmers can reach out to reputed banks and cooperative institutes for loans. They provide agricultural loans to farmers at a low-interest rate. Hence, the Kisan credit card scheme offers a source of formal credit to farmers. Small and marginal farmers can reach out for loan requirements in the agricultural, fisheries and animal husbandry sectors.
Top banks offering Kisan credit cards
Given below are the list of best Kisan credit card offers and eligibility to apply for it:
SBI kisan credit card
The State bank of India provides timely and adequate credit for meeting production needs, contingency expenses or other expenses related to ancillary activities. They have simplified procedures facilitating the borrowers to availing loans as and when they need.
Who are eligible to apply for the SBI Kisan credit card
- All farmers-individuals/Joint borrowers who are owner cultivators
- Tenant farmers, oral lessees, Sharecroppers etc
- SHGs or Joint Liability Groups of farmers, including tenant farmers, sharecroppers etc.
Security requirement to avail of the loan:
Collateral is waived for KCC limit up to Rs. 1.60 lakh and Rs.3.00 lakh in case of a tie-up. Beyond that, equitable mortgage / registered mortgage of land / immovable property as applicable of the value of 100 % loan.
Axis bank’s Kisan credit card
The bank aims to provide timely credit to farmers, meeting their cultivation, farm maintenance and investment needs. Additionally, they provide high-value loans for multiple needs, quick and easy loan sanctions, and a low-interest rate.
Who are eligible to apply for axis bank’s Kisan credit card?
- The minimum age should be 18 years, and the maximum age be 75 years at the end of the loan tenure.
- For borrowers above the age of 60, a co-borrower less than 60 years old is mandatory. Such a co-borrower should be a legal heir/immediate family member.
Joint holding (single or multiple locations) for up to 5 persons is permitted.
Insurance coverage on the loan
- The borrower also gets free accidental insurance coverage of up to Rs. 50000.
Central bank of India’s Kisan credit card
The bank’s objective is to meet short-term loan requirements for dairy animals, poultry birds, agricultural needs, farmers’ consumption requirements, and post-harvest expenses.
Who are eligible to apply for the central bank of India Kisan credit card?
- All farmers, including joint borrowers or individual borrowers.
- Self-help groups or joint liability groups of farmers.
- Farmers produce organizations, or farmer produces companies.
Security requirement to avail of the loan
- No collateral is required for a limit of up to 1.60 lakhs and 3 lakhs in case of tie-ups. Above this, collateral is required.
Bank of India’s Kisan credit card
The bank aims to provide need-based and timely credit support to the farmers for their cultivation needs and non-farm activities in a cost-effective manner. Additionally, they offer flexibility and operational freedom in credit utilization.
Who are eligible to apply for the Bank of India’s Kisan credit card?
- The farmers applying for short term credit for crop production, allied activities and other non-farm activities are eligible.
Similarly, the farmers should come from the operational area of the Branch to be eligible. Or the applicants engaged in fisheries, dairy and other Animal Husbandry activities are eligible to apply.
Security requirement to avail of the loan:
- Up to Rs.1,60,000/=: D. P. Note Hypothecation of standing crops
- Above Rs.1,60,000/=: D. P. Note Hypothecation of standing crops Mortgage of land / Collateral security
Document required to apply for Kisan credit card
- Two Passport Size Photographs.
- ID proof such as Driving License / Aadhar Card / Voter Identity Card / Passport, etc. Address Proof such as Driving License, Aadhar Card, etc.
- Proof of landholding duly certified by the revenue authorities.
- Cropping pattern (Crops grown) with acreage.
- Security document for loan limit above Rs.1.60 lakh / Rs.3.00 lakh, as applicable.
To sum up, you know that the Kisan credit card is a feasible option for farmers who want to come out of the informal lending borrowing system. This blog helped you determine the eligibility to apply for the card and the best credit cards in India offered by top banks. Therefore, you can apply for the Kisan credit card in the bank that fits your requirements. However, if you are looking for an agriculture loan and are eligible to apply, you should check and compare various banks to know the best offer.