To provide institutional loans to farmers, the Government of India provides Kisan Credit Cards with a 2% subsidy on interest rate up to a loan amount of Rs.3 lakh at a 7% annual effective interest rate. However, to ensure prompt repayment, the government is providing another 3% subsidy that makes the effective interest rate down to 4%.
This loan facility is available for all individuals who are involved in farming, fishery and aquaculture, and animal farming. It provides comprehensive financial assistance to meet all types of agricultural requirements.
Farmers can avail this facility from several financial institutions within 2 weeks after submitting a Kisan Credit Card application form.
Listed below are some points that farmers should keep in mind while opting for this card –
Necessary documents for application:
The list of required documents to avail this credit card can be determined by the internal guidelines of the concerned lenders as per the Reserve Bank of India.
However, following is the list of basic documents that applicants need to fill Kisan credit card application form –
- An application form filled with correct details of the applicant.
- Copy of identity and address proof like Aadhar, Voter ID, PAN, Driving license, etc. Moreover, the address needs to be the current residential place of the farmer.
- Documents to verify the details of the concerned land.
- A passport-sized photograph.
Other than the ones stated above, financial companies can ask for other documents like a post-dated cheque for security.
Farmers can visit the financier’s branch and contact any official to apply for a Kisan card. Nonetheless, by visiting the website of a financial institution, individuals can also opt for the online application process.
The following is the process to apply for a credit card online –
- On the website, applicants have to find a Kisan Credit Card from the list of available credit cards.
- Next, by clicking on the “Apply” button, individuals will be taken to the Kisan credit card application page.
- Applicants are required to fill in the form with correct details and hit the “Submit” button.
- After the submission, applicants will be provided with a unique reference number.
- Financial institutions might take 3-4 working days to check eligibility of applicants and then start further documentation process.
- Only after final verification of provided documentation, lenders can issue the credit card.
Eligibility criteria of Kisan Credit Card:
- Owners of land who are involved in farming or other allied activities.
- Farmers who have borrowed land for cultivation. These farmers can be any individuals or joint borrowers.
- Sharecroppers, oral lessees, and tenant farmers can opt for Kisan card apply.
- Joint liability groups or self-help groups of tenant or lessee or sharecroppers.
- Farmers with production credit of Rs.5000 and above.
- Aspirant farmers need to be involved either with inland fisheries and aquaculture, marine fisheries, poultry, dairy, and cropping.
- The residential address of applicants’ should come under the operational area of lenders.
Only on meeting these eligibility criteria, farmers can opt for this card. Nonetheless, an individual who is not qualified for this facility can opt for credit cards such as the Bajaj Finserv RBL Bank SuperCard with several benefits.
This credit card comes with an emergency personal loan facility on the credit limit with a 90-day interest-free period. There can be several reasons to opt for a personal loan on a credit card. Not only agricultural requirements but also household needs can be met with such loans.
Furthermore, this financial institution also provides pre-approved offers that help the applicants to avail financing through a hassle-free process. These offers are not only applicable to credit cards, but also on other services like business loans, personal loans, etc. Applicants can check their pre-approved offers by providing their names and mobile numbers on the online portal.
Kisan Credit Card comes with flexible repayment options that enable the farmers to repay the loan amount post-harvest. However, cardholders should always know how to use a credit card wisely and avoid unnecessary expenses.