KCC Scheme: While presenting the budget, Finance Minister Nirmala Sitharaman has also talked about starting Kisan Credit Card in 5 new states and promoting the facilities available on it. Under this scheme, the government gives loans to farmers for farming at a low interest rate. A large number of farmers are also taking advantage of the scheme. If you also want to take advantage of this scheme, then this news is very useful for you.
Kisan Credit Card Scheme is a scheme launched by the Government of India for farmers. Under this scheme, farmers are provided short term loans to meet their agricultural needs, fisheries and animal husbandry needs and credit limit to purchase equipment and meet other expenses.
What is the benefit?
The maximum validity of Kisan Credit Card is 3 years. The loan is repaid after harvesting the crop. No security deposit is required for loans up to Rs 1.60 lakh. KCC holders get an insurance cover of up to Rs 50,000 in case of permanent disability or death. While for other risks, they are given a cover of up to Rs 25,000.
Through KCC, farmers are given loans with a maximum interest rate of 7 percent. But farmers who repay their loan on time are given a discount of 3 percent in the interest rate and thus they have to pay only 4 percent interest rate.
How to apply
To apply for this card, visit the official website of Kisan Bank and select the option to apply for KCC. Now fill the Kisan application form and click on the ‘Submit’ button. After successfully submitting the form, you will get a reference number. Keep this reference number safe for future use.
They will not get benefit
If a farmer brother already has an outstanding loan from a bank or financial institution, then he may have difficulty in getting KCC. Banks will check the credit history of the farmer to assess the ability to take a loan. If the farmer brother does not have the necessary documents such as land ownership proof, identity proof, income proof etc., then his application may be rejected. Farmer brothers should check all the necessary documents before submitting them. Only those farmers whose age is between 18 to 75 years will be given the benefit of this scheme. Farmer brothers should keep in mind that applicants above 60 years of age must have a co-applicant.