The NDA government of India launched a programme in 1998 which is the Kisan Credit Card Scheme. The main aim of this scheme is to provide credits to the farmers. This comes in need at the time of harvesting or planting.
Most of the farmers in India depend on the informal banking sector that is the money lenders. Kisan Credit Card scheme aims to keep the farmers away from such informal banks. The regional bank, the cooperative bank, and the public sector banks offer this scheme.
How Does The Credit Card Work?
- The operating system of the card is very simple and straightforward
- The bank will first check the landholding and the income of the farmer from it
- If all these are reasonable then the farmers get a Kisan Credit Card. The credit history of the farmer should be very good so that they can be eligible for the same
- The farmers who receive a credit card get many facilities
- The facilities may be passbook with the name, address, and credit limits etc
- All these things serve as the unique identification number
Features Of Kisan Credit Card Scheme
There are many banks that offer the Kisan Credit Card Scheme. The main aim of the scheme is to provide short time loans to the farmers which are easily attainable. The features of Kisan Credit Scheme 2018 are:
- Providing credit so that the farmers meet the requirements
- Offering financial benefits to the farmers and fishermen
- The farmers also get the ancillary credits. This is for the production of crops or other contingencies.
- The Kisan Credit cardholders get the offer of National Crop Insurance scheme
- This scheme provides coverage of the crop loans as the KCC provides loans for certain crops.
- The farmers get the protection against the crop loss
- Any loss due to any natural calamities or pest attacks etc get full support
- Sometimes the farmers have to provide a collateral security. This is only when the amount of the loan is more than Rs. 1, 00, 000.
Benefits Of Kisan Credit Card Scheme
There are several benefits of Kisan Credit Card scheme 2018. Below here are some of them:
- Options for flexible repayment
- The disbursement procedure is very much hassle-free
- The farmers get a term loan for the entire agricultural need or a single credit facility
- The availability of the credit is up to 3 years and without any season appraisals
- The Kisan Credit Card helps during the purchase of seeds, fertilizers etc.
- The bank decides the maximum credit limit
- They offer the benefit by looking at the income that generates from the agricultural sources
- The farmers can start repaying after the harvesting season is over
- The interest rates of the credit are lowest of all other credits
- The farmers can withdraw the funds from any branches of the bank
Eligibility For Kisan Credit Cards
The eligibility criteria of Kisan Credit Card scheme for Karnataka are:
- The customer should be a farmer either joint borrower of land or an individual one
- The land should be under cultivation and generates crop
- The applicant’s age should be of 18 years to 75 years
Do you like the benefits of the Kisan Credit Card scheme for Karnataka?
Wrapping Things Up,
So, the above points clearly state that the Kisan Credit Card scheme aims for a lot. Hope it makes the agriculture of India better than in near future.
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