Kisan Credit Card
- Context (PIB): A Pilot project has been started to implement the Rupay Kisan Credit Card.
- Under this project, all the cooperative societies’ members will have accounts in the concerned District Central Cooperative Banks.
- Rupay-Kisan Credit Cards (KCCs) are being distributed to the account holders.
About Kisan Credit Cards
- Kisan Credit Card was introduced in 1998 to provide farmers with adequate and timely credit support.
- It was extended for Allied and non-farm activities in 2004.
- Electronic Kisan Credit Cards have been issued on the Working Group report under T. M. Bhasin.
- The age group of 18-75 years is eligible for Kisan Credit Card (KCC). Senior citizens must have a legal heir as a co-borrower.
- Implementing Agencies: Commercial Banks, Regional Rural Banks (RRBs), Small Finance Banks, and Cooperatives.
Eligibility
- Farmers – individual/joint borrowers who are owner-cultivators.
- Tenant farmers, oral lessees & sharecroppers
- SHGs or Joint Liability Groups (JLGs) of farmers, including tenant farmers, sharecroppers, etc
- Age group of 18-75 years. Senior citizens must have a legal heir as a co-borrower.
Objectives of Kisan Credit Card
- To meet the short-term credit requirements for the cultivation of crops.
- Post-harvest expenses.
- Produce marketing loan.
- Consumption requirements of farmer households.
- Working capital for maintenance of farm assets and activities allied to agriculture.
- Investment credit requirement for agriculture and allied activities.
Features
- It comes with an ATM-enabled RuPay debit card.
- Aadhaar linkage is compulsory for interest subvention.
- It has a validity period of 5 years.
- It attracts no processing fee for loans under KCC.
- The limit of collateral-free agriculture loans has been revised from Rs. 1 lakh to Rs.1.6 lakh.
- It is issued at a reasonable interest rate of 7% per annum with interest subvention of 2% and 3% subvention on prompt payment for short-term crop loans up to Rs. 3 lakh.
