Kisan Credit Card

Credit card to provide affordable credit for farmers in India. It was started by the Government of India, Reserve Bank of India, and National Bank for Agricultural and Rural Development (NABARD) in 1998-99 to help farmers to access timely and adequate credit.

The Kisan Credit Card allows farmers to have cash credit facilities without going through time-consuming bank credit screening processes repeatedly.

Repayment can be rescheduled if there is a bad crop season, and extensions are offered for up to four years.

The card is valid for three years and subject to annual renewals.

Eligible farmers to be provided with a Kisan Credit Card and a pass book or card-cum-pass book.

Revolving cash credit facility involving any number of drawals and repayments within the limit.

Limit to be fixed on the basis of operational land holding, cropping pattern and scale of finance.

Entire production credit needs for full year plus ancillary activities related to crop production to be considered while fixing limit.

Sub-limits to cover short term, medium term as well as term credit are fixed at the discretion of banks.

Card valid for 3 to 5 years subject to annual review. As incentive for good performance, credit limits could be enhanced to take care of increase in costs, change in cropping pattern, etc.

Each drawal to be repaid within a maximum period of 12 months.

Conversion/reschedulement of loans also permissible in case of damage to crops due to natural calamities.

Security, margin, rate of interest, etc. as per RBI norms.

Operations may be through issuing branch (and also PACS in the case of Cooperative Banks) through other designated branches at the discretion of bank.

Withdrawals through slips/cheques accompanied by card and passbook.

Crop loans disbursed under KCC Scheme for notified crops are covered under Rashtriya Krishi Bima Yojna (National Crop Insurance Scheme), a crop insurance scheme introduced at the behest of Government of India to protect the interest of the farmer against loss of crop yield caused by natural calamities, pest attacks etc

The card is valid for three years, of which crop loan and working capital components have to be renewed annually.

Maximum limits: Rs. 50000/- for Rabi Crops. Rs. 50000/- for Kharif Crops.

Eligibility: Individual/society.

Repayment period: Kharif 31 January Rabi 31 July. 5

Collateral Security Charge on land in case loan is above Rs. 10000/- and two sureties if loan is below Rs. 10000/-.