How to Apply for Kisan Credit Card for Short Term Financial Needs of Farmers

Updated on: 14 Dec 2021 // 24 min read // Credit Cards

Author :

(522 posts)

It would not be an exaggeration to say that the agriculture industry is the backbone of the Indian economy. But despite crucial contribution to the progress of the nation, the issue of financial security of our farmers is one of the major issues for policymakers. Sadly, farmers have always been dependent on private money lenders who used to charge exorbitant interest rates, pushing them towards a debt trap.

Thankfully though, the government of India took cognizance of the plight of the farmers and has introduced a new financial product that specifically caters to the needs of the farmers, i.e., Kisan Credit Cards. Originally promulgated by NABARD (National Bank for Agriculture and Rural Development), this scheme is now known as Pradhan Mantri Kisan Credit Card Yojana. The scheme played an important role in bringing farmers into the financial mainstream.

What is a Kisan Credit Card?

Kisan Credit Card scheme is being implemented across the country through Public Sector Banks, Cooperative Banks, and Regional Rural Banks. Farmers are issued a smart Credit Card and a passbook. These Credit Cards also work on the principle of revolving credit wherein the holder can use the card within the specified credit limit. The amount withdrawn through a Kisan Credit Card must be repaid in twelve months. Lenders are free to determine the amount they wish to offer to each borrower. The credit limit can be increased or decreased by the lender. Now, along with a credit card, banks are also issuing smart Debit Cards to farmers.

Features of Kisan Credit Card

Under this scheme, farmers can avail of Short-Term Loans at subsidized interest rates for their various financial requirements. Make a note of some of the noteworthy features below:

Credit facility for the purchase of fertilizers, seeds, pesticides, and other essential agricultural equipment.
Payment of post-harvest expenses.
Incurring marketing expenses for selling the produce through multiple channels.
Ancillary credit for crop protection and other contingencies.
Asset Insurance and Personal Accident Insurance for the cardholder.
Payment for consumption requirement of farmer’s household.
Catering to working capital requirements.
Providing monetary assistance for the rearing of animals or birds.

Documents required for Kisan Credit Card

Here is the list of various documents required before applying for a Kisan Credit Card:

Completed application form along with the sign and photograph of the applicant.
Valid government-issued address proof like Aadhar card, Voter ID, Driving License etc.
Valid government-issued identity proof like PAN Card, Aadhar Card, Ration Card etc.
Documents pertaining to agricultural land owned by the applicant.
Other documents as required by the banker.

Eligibility for a Kisan Credit Card

In order to be eligible for a Kisan Credit Card, the applicant must meet the following eligibility criteria:

The acceptable age limit for a Kisan Credit Card is 18-60 years.
The land must be agriculturally active and should be generating crops regularly.
Individual landowners, as well as joint landowners are eligible to apply.
Tenants who have taken land on lease for cultivation are also eligible.
Self-help groups or Joint Liability Groups of farmers are also eligible.