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.
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 The amount withdrawn through a Kisan Credit Card must be repaid in twelve months.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.
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:
Here is the list of various documents required before applying for a Kisan Credit Card:
In order to be eligible for a Kisan Credit Card, the applicant must meet the following eligibility criteria:
There are two options available for you to apply for a Kisan Credit Card, i.e.,
You can complete your application for a Kisan Credit Card through the official website of the bank with the help of the following steps:
You can also visit the nearest branch of the participating bank to apply for a Kisan Credit Card. Here are the steps that you need to follow:
Kisan Credit Card or the Pradhan Mantri Kisan Credit Card Yojana is an excellent option for farmers who require short-term financing for farming needs. With the government actively promoting the Kisan Credit Card and increasing the outlay for the scheme, farmers can expect significant benefits in the long run.
Also Read: Top 10 Credit Cards in India for 2020
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