Kisan Credit Card Yojana 2023: Farmers will get 1.6 lakh now, apply today

|| Kisan Credit Card Loan Yojana 2023 (Kisan Credit Card Yojana Online Apply), [Documents, Time Limit for Loan, Objectives, Benefits, Interest Rate] ||

The objective of Kisan Credit Card Scheme 2023 is to support the farmers of India, who are the main contributors to the growth and progress of the country. The government recognizes the hard work of farmers who are responsible for feeding the nation and wants to provide financial support and benefits to them. Both the central and state governments have implemented various programs to improve the livelihood of farmers from time to time.

The central government offers various schemes to help farmers, such as the Pradhan Mantri Fasal Bima Yojana, the PM Kisan Yojana, the Mandhan Yojana and the Kisan Credit Card Yojana. In this article, we will focus on the Kisan Credit Card scheme. Launched in 1998, the scheme is a joint effort by the central government, the Reserve Bank of India and NABARD. It provides loans to farmers at low interest rates using their agricultural land as collateral.

Kisan Credit Card Yojana 2023

Kisan Credit Card Scheme 2023, also known as Pradhan Mantri Kisan Credit Card (Kisan Credit Card Yojana 2023), was established in 1998 by the Central Government in partnership with NABARD and Reserve Bank of India. The aim of this scheme is to get low interest loans from banks to farmers for their agricultural expenditure. Small farmers can get loans up to INR 3 lakhs at an interest rate of just 7%. In addition, those who repay their loan within a year get an additional 3% discount.

Reasons for launching KCC scheme

Before the introduction of the Kisan Credit Card (KCC) scheme, farmers had to depend on village moneylenders for their financial needs. However, the loans given by these moneylenders came with high interest rates, making it difficult for farmers to repay the debt and escape their clutches. In some cases, farmers had to mortgage their house property or farm land to get the loan.

The aim of the KCC scheme is to get low interest loans from banks with more favorable terms to farmers. If you are a farmer and interested in getting information about KCC scheme or loan, this article will provide you a comprehensive overview.

Time limit for Kisan Credit Card Yojana 2023

KCC Loan Tenure: 5 years with annual interest payments and renewal required upon completion. Loans must be renewed after 5 years by submitting updated documents to the bank. However, the interest on the loan must be paid annually throughout the loan tenure.

Required Documents for Agricultural Loan (KCC)

Documents Required for Kisan Credit Card (KCC) Loan:

  • affidavit
  • aadhar card
  • PAN card
  • Passport size photograph

Additionally, the bank may require certain documents to be generated by the Tehsil, such as NEC or LSR (Barahsala). While a Barahsala (a 12-year search report from the Tehsil) is usually required only for loans above INR 1.60 lakh, it may still be requested in some cases. While applying for a KCC loan, farmers must provide the bank with the documents listed along with their ori, khatouni and share certificate.

Kisan Credit Card Objectives

  • To provide financial support to farmers for their agricultural needs
  • To help farmers get rid of moneylenders and get loans from banks at low interest rates
  • To ensure that farmers have the necessary funds for sowing, harvesting, buying seeds and other farming activities
  • To improve financial stability of the farmers.
  • However, despite the success of the scheme, some farmers may still face challenges like corruption and inefficiency in the loan disbursement process.

Kisan Credit Card Yojana (Interest rate)

Interest rate for Kisan Credit Card (KCC) loan is 4-5% per annum if the loan is repaid on time. If payment is delayed, the interest rate can go up to 12-13%. KCC is a cash credit loan, meaning it allows the farmer to make deposits and withdrawals as many times as he wants during the loan period. The interest has to be paid within one year, and depositing it before the due date can get a 3% subsidy on the interest amount. Failure to deposit interest on time may lead to increase in interest rate. It is important for the farmer to pay on time to avoid paying high interest rates.

Kisan Credit Card Yojana Benefits

  • KCC loans have low interest rates, which makes it easier for farmers to repay the loan without any burden.
  • Farmers can avail credit facilities from banks easily and quickly with Kisan Credit Card.
  • KCC card eliminates the need for multiple trips to the bank for loan disbursal and documentation, making the process convenient for farmers.
  • The card also functions as an ATM card, allowing farmers to withdraw cash from ATMs for their daily transactions.
  • The government has also made provisions for crop insurance, which makes it easier for farmers to protect their crops from damage caused by natural disasters.

Overall, the objective of Kisan Credit Card Scheme is to improve the financial stability and livelihood of farmers, making it easier for them to meet their agricultural needs.

How is KCC loan limit decided

The loan limit for Kisan Credit Card is decided by the District Level Technical Committee (DLTC) based on the financial standard for the crops grown by the farmers on their land. The DLTC is headed by the District Magistrate and consists of officials from NABARD, banks and the state agriculture department. The finance scale, which specifies the amount of loan for each crop, is issued by the DLTC every year. Bank then decides Kisan Credit Card loan limit based on this scale.

What happens to KCC on the death of a farmer

In case of the death of the farmer, the Kisan Credit Card Yojana 2023 becomes payable. The loan is usually given to the legal heirs of the deceased farmer, as shown in the land records. If the legal heirs are unable to repay the loan, the bank has the right to sell the farmer’s land and recover the loan. It is important for farmers to keep their family members informed of their loan details and to include their names in the land records to avoid any confusion or dispute in case of their death.

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