What Is A Kisan Credit Card?
Introduced in August 1998, Kisan Credit Card is a scheme prepared & launched by National Bank for Agriculture and Rural Development (NABARD) and Reserve Bank Of India (RBI). This scheme enables the farmers to have an easy and quick access to affordable credit as against the expensive and lucrative credit from informal banks. It looks after the financial needs of the farmers during the planting and harvesting season. Initially proposed in the budget session of 1998 – 1999 by the then finance minister Yashwant Sinha, this scheme was brought into action by NABARD after a long discussion with some top banks in the country.
These cards are easily available at cooperative banks, public sector commercial banks and regional rural banks.
Features Of Kisan Credit Card:
- Provides credit to meet the financial requirements of farmers for agricultural and its allied activities, primarily related to production and other contingencies.
- Insurance coverage is provided to Kisan Credit Cardholders.
- National Crop Insurance Scheme, which provides coverage for crop loans given under the KCC scheme for certain crops, is also offered to the Kisan Credit Cardholders.
- Provides protection against loss of crops due to natural calamities, pest attacks, etc.
Benefits Of Kisan Credit Cards:
- Flexible repayment alternatives
- Disbursement procedure is made hassle free
- Term Loan/Single Credit Facility for all agricultural requirements
- Easily available credit which enables a decrease in the farmer’s dependence on Informal Banks like Moneylenders.
- Helps in the purchase of fertilizers, seeds, etc.
- Availing cash discounts from Merchants/Dealers made easy
- No restriction on the cash withdrawals, made by the Kisan Credit Cardholder, as long as it is within the credit limit set by the bank
- Lower Rates of Interest
Top Banks Providing Kisan Credit Cards In India:
- Bank of India
- NPCI (RuPay Kisan credit cards)
If you would like to apply for any other credit cards, you can find list of BankBazaar Credit cards and Apply with ease!