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Kissan Credit Card

The Kisan Credit Card is a credit card to provide

affordable credit for farmers in India It was started by the Government of India, Reserve Bank of India (RBI), and National Bank for Agricultural and Rural Development(NABARD) in 1998-99 to help farmers access timely and adequate credit. The Kisan Credit Card allows farmers to have cash credit facilities without going through timeconsuming bank credit screening processes repeatedly

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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
Withdrawals are made using slips, cards, and a

passbook

KCC Services Offered by IDBI

Crop loan with Kisan Credit Card
Credit to farmers or groups of farmers for crop loans,

working capital or investment credit for agriculture purpose

All farmers, owner cultivators, tenant cultivators, share

croppers and individual farmers having agreement with institution are eligible for the card.

Objectives of the Scheme

To provide insurance coverage and financial support to

the farmers in the event of failure of crops as a result of natural calamities, pests and diseases. To encourage farmers to adopt progressive farming practices, high value inputs and higher technology in agriculture. To help stabilize farm incomes, particularly in disaster years

Documents needed for KCC

Sarpanch Parman Patra
Voter I-Card Residential Proof 8 Photographs Land Map

Features of Kissan Credit Card

Eligible farmers to be provided with a Kisan Credit

Card and a pass book or card-cum-pass book

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
Each drawal to be repaid within a maximum period of

12 months

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

Advantages of the Kisan Credit Card Scheme to the farmers

Access to adequate and timely credit to farmers.
Full year's credit requirement of the borrower taken

care of.
Minimum paper work and simplification of

documentation for drawal of funds from the bank

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Improvement in recycling of funds and better recovery

of loans
Reduction in transaction cost to the banks Better Banker - Client relationships Assured availability of credit at any time enabling

reduced interest burden for the farmer

Drawbacks of KCC
Only 40 per cent of the total 760 million farmers have

been distributed KCCs against the target of covering all farmers by March 31, 2012. Except for Bank of Rajasthan no private bank has issued any Kisan Credit Card to farmers. Similarly, Andhra Bank, Corporation Bank, United Bank Only a few banks from the State Bank group have also issued cards to the farmers against the total issuance of the group of 71,419 cards with a credit limit of Rs 515.66 crore and disbursement of Rs 48.06 crore (as on December 31, 2012).

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Commercial banks have issued only 180,754 kisan

credit cards of the 417,323 kisan credit cards issued by all banks. The regional rural banks have issued 63,002 credit cards and co-operative banks have issued 173,567 cards. Commercial bankers have urged the department of agriculture to provide block-wise list of number of farmers and cards issued to them so that the rest of the farmers can be covered but bankers are not interested in making any data on farmers

Conclusion
KCC is a boon for the farmers
Government is not able to provide KCC to every farmer If Proper steps or initatives are taken by the

government the farmers will benefit a lot from the KCC as they can get loan from banks for crop cultivation and farmers need not to go to money lenders who charge them huge interest

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