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Kisan Credit Card Scheme: The Kisan Credit Card (KCC) scheme was launched to cater to the financial needs of farmers at different stages of farming. It provides a streamlined credit support system through banks, ensuring timely and adequate financial assistance under a single-window approach. The KCC scheme simplifies the loan process, offering farmers a flexible way to access funds for various agricultural purposes. The Government of India has clarified various aspects of the KCC scheme in response to questions raised in the Lok Sabha. Here’s what farmers need to know about charges, interest rates, and documentation requirements under the scheme. Also read: Is Centre planning to reintroduce currency notes of denomination greater than Rs 500? Here’s all you need to know As per an advisory issued by the government, banks have been directed to waive processing, documentation, inspection, and other service charges for KCC loans up to Rs 3 lakh. This measure aims to alleviate the financial burden on small and marginal farmers. However, for loans exceeding Rs 3 lakh, charges such as processing fees and inspection costs are determined by individual banks based on their board-approved policies. In response to a question asked about the rate of interest being charged on Kisan Credit Card on month/half-year/annual basis, Minister of State in Finance Ministry Pankaj Chaudhary said, “Under the KCC scheme, loans up to Rs 3 lakh are available at a concessional interest rate of 7% per annum. Additionally, farmers who repay their loans promptly can avail interest subvention of 3%, effectively reducing the interest rate to 4% per annum. For loans exceeding Rs 3 lakh, the interest rates are determined by the respective bank’s board-approved policies.” The government has confirmed that digitally signed online land records are valid for KCC applications. However, due to incomplete digitization of land records in many states, banks often require legal opinions to confirm the authenticity of these documents. For instance, the Baroda Rajasthan Regional Rural Bank accepts certificates from Tehsildars verifying land ownership and outstanding government dues. Also read: Who bears the burden of a loan after the borrower’s death? -Visit the website of the bank you wish to apply for the Kisan Credit Card (KCC) scheme. -From the list of options on the bank’s website, choose the Kisan Credit Card option. -Click on the ‘Apply’ option, and you will be redirected to the application page. -Fill in the form with the required details and click on ‘Submit’. -After submission, an application reference number will be sent to you. -If you are eligible, the bank will contact you for the further process within 3-4 working days. None
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