Wondering how to apply for the PM Kisan credit card online? You should first know more about the scheme under which this plan has been formulated. This is a Central Government scheme where the Government offers 100% funding for eligible farmers. Being operational nationwide from the 1st of December 2018, the scheme offers Rs. 6,000 in income support every year through three equal monetary instalments for marginal and small farming families with cumulative land ownership going up to 2 hectares. The family definition under this scheme involves the husband, wife and minor children.
The families are identified by State and UT administrations for getting support accordingly. Direct bank transfers are deployed to beneficiary accounts. Coming to the PM Kisan credit card online facility, this was announced on the 14th of May 2020, by the Union Finance Minister Nirmala Sitharaman. This covered Rs. 2 lakh crore in concessional credit which would benefit a whopping 2.5 crore farmers via the KCC (Kisan Credit Card) scheme. The Government will be carrying out special identification drives for beneficiaries via credit cards. The scheme will also cover animal husbandry and fishermen alike.
Learning more about Kisan credit card scheme
- This scheme offers loans or institutional credit for farmers with
regard to carrying out their agricultural activities/operations.
- Farmers may enjoy the benefits of flexible repayment of loans.
- Loans can be taken for tenures up to 3 years.
- Holders of credit cards may also get benefits of PM-Kisan and the
National Crop Insurance Scheme.
- This will help farmers to buy fertilizers, seeds and other essentials while withdrawing cash from this card.
- It offers protection against any crop losses owing to natural
calamities and attacks by pests.
The original scheme which is PM Kisan Samman Nidhi Yojana was first launched in the year 1998 for taking care of farmers in India and their financial requirements. The scheme helps farmers get credit whenever they require at concessional interest rates, thereby lowering their overall depending on informal lending/banking systems in villages and also on moneylenders who often charge exorbitant rates of interest. The card covers loans at lower interest rates along with post-harvest expenditure, investment credit for drip irrigation, plantation, pump sets and land development along with working capital for maintenance of farm equipment and agricultural activities. Consumption requirements of farmers are also covered under this credit card scheme.
Application eligibility for Kisan credit card scheme
- Marginal and small farmers.
- SHGs (self-help groups).
- Fishermen.
- Share Croppers.
- JLGs (joint liability groups).
- Tenant farmers and Lessees.
- Those working in Animal Husbandry.
Eligibility criteria
Those who are involved in agriculture and farming will have eligibility for applying under the PM Kisan credit card scheme. Farmers who cultivate crops on land owned by others will also be eligible to apply with this scheme. The applicant’s age should be 18-75 years and people who are above 60 years of age should compulsorily have a co-applicant for the loan.
How to apply for PM Kisan credit card online
The PM Kisan credit card online apply process is quite simple. Here are the steps to be followed:
- Go to the official website of the banking or financial institution
which is offering the PM Kisan credit card facility. This is the first step in the entire process.
- You should then search ‘Apply for KCC’ online and then download the application form before printing it out.
- Fill up this Kisan credit card form totally before submitting the
same to the nearest banking branch.
- The form will be reviewed by the requisite loan officer who will
then get the unique reference number issued for any particular application.
- The application reference number has to be saved by the applicant
carefully.
- Post sanctioning of the loan by the banking institution, the Kisan
credit card will be sent to the registered address of the applicant.
Documents needed for applying
- Filled up form for Kisan credit card application.
- Photo Identity Proof- PAN Card, Aadhar Card, Driving License,
Voter ID Card, Passport, Letter issued by the UIDAI or NREGA Job Card.
- Address Proof- Voter ID Card, Aadhar Card, Utility Bills, Driving
License, NREGA Job Card, Bank Account Statements, Ration Card, Document for
Property Registration.
- Land Documents.
- Two Passport-Sized Photos.
- Any other documents required by the bank/financial institution.
Amount and rates of interest
Farmers can get short-term loans up to Rs. 3 lakh via the Kisan credit card. For getting loans above Rs. 1 lakh, they are required to mortgage land/crops as collateral. Interest rates are considerably lower at 7% and if the farmer cannot repay the loan on the due date, another rebate of 3% may be given. The effective rate of interest thus becomes just 4% in such scenarios.
Those who are taking loans of at least Rs. 25,000 also get a cheque book with their Kisan credit card. It may be used for direct purchases of fertilizers, seeds, pesticides, paying labourers, cash withdrawals and for buying agricultural equipment/products.
Banks offering Kisan credit card facilities
There are several Indian banking and financial institutions providing Kisan credit card facilities to their customers. These include the SBI (State Bank of India), PNB (Punjab National Bank), Axis Bank, Indian Overseas Bank, Bank of India (BOI), IDBI, and HDFC Bank.
The Kisan Credit Card (KCC) is a great way to raise funds without depending on moneylenders as far as farmers are concerned.