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

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

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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 The amount withdrawn through a Kisan Credit Card must be repaid in twelve months.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.

How to apply for Kisan Credit Card?

There are two options available for you to apply for a Kisan Credit Card, i.e.,

  • Online Application

    You can complete your application for a Kisan Credit Card through the official website of the bank with the help of the following steps:

  1. Log-on o the official website of the bank from whom you wish to avail of this scheme.
  2. When the website opens, browse the credit cards section and select the option for Kisan Credit Card.
  3. Now, click on apply for Kisan Credit Card button to start your online application.
  4. Fill in the necessary details as required. Before clicking on the submit button, make sure you have filled all the details correctly.
  5. Upload the scanned copies of the documents as required by the bank.
  6. Once your application has been submitted, you will receive an Application Reference Number (ARN). Note the same as it will be required for tracking the application status.
  7. If your application is approved, your Kisan Credit Card will be dispatched within one working week.
  8. If not, then check the online status and provide any additional information required by the bank.
  • Branch Visit

    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:

  1. Visit the nearest branch of the participating bank that you prefer.
  2. Meet in-charge of the credit department there and discuss your need for a Kisan Credit Card.
  3. You will be provided a Kisan Credit Card Application Form, which you need to duly fill-in with correct information and paste your recent photograph. After ensuring that the details are entered correctly, sign the application form, and submit with the bank.
  4. Take acknowledgement slip and reference details from the officer for future requirements.
  5. Within 3-4 working days, you will be intimated regarding the status of the application. If the application has been approved, your Credit Card will be sent to your registered address.
  6. If any additional details are required, submit them as soon as possible to ensure that the application is processed on priority.

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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