KISAN CREDIT CARD (KCC)

Purpose:

To provide timely and adequate credit to farmers to meet their production credit needs (cultivation expenses) besides meeting contingency expenses, and expenses related to ancillary activities through simplified procedure facilitating availment of the loans as and when needed.

Who are eligible for the loan?
  • All farmers-individuals/Joint borrowers who are owner cultivators.

  • Tenant farmers, Oral lessees and Share Croppers etc.

  • SHGs or Joint Liability Groups of farmers including tenant farmers, share croppers etc.,

Loan amount
Features
  • Short term credit limit is fixed for the first year depending upon the crops cultivated as per proposed cropping pattern & scale of finance

  • post-harvest/ household / consumption requirements

  • Maintenance expenses of farm assets, crop insurance, Personal Accident Insurance Scheme (PAIS) and Asset insurance.

  • For every successive years (2nd, 3rd, 4th, and 5th year), the limit will be stepped up @10%.(short term credit limit sanctioned for 5th year will be about 150% of the first year limit allowed to farmers).

  • Investment credit requirement of small value in the nature of farm implements/ equipments etc (like sprayer, plough etc.,) and repayable within a period of one year will be included while fixing KCC limit (This portion of the credit will not be included for automatic step up during 2nd year to 5th year but credit requirement for this portion in each year will be reckoned for arriving at the maximum drawal limit for the respective year).

  • The short term loan limit arrived for the 5th year as in (iv) plus estimated investment loan requirement as in (v) (highest among the five years) above will be the Maximum Permissible Limit (MPL) and sanctioned as the Kisan Credit Card Limit.

  • Short term loan limit assessed for the first year or for the 2nd to 5th year plus the estimated investment credit limit required, as in (iv) and (v) above, will be the Maximum Drawal Limit (MDL) allowed in the account, for the particular year.

  • KCC borrowers shall be issued an ATM cum Debit card (State Bank Kisan Card), to enable them to withdraw from KCC accounts from ATMs and PoS terminals.
  • KCC will be in the nature of revolving account. Credit balance in the account, if any, to fetch interest at Savings bank rate.

  • Processing charges waived for KCC limit up to Rs.3 lacs.

  • Collateral security is waived for

             a. limit of up to Rs.1 lac

             b. limit up to Rs.3 lacs for loans with tie-up arrangement for recovery.

  • KCC accounts should be renewed annually, well before the above due dates, every year to continue the limit during the KCC validity period of 5 years. Branches shall, therefore, ensure to obtain revival letters before expiry of 3 years wherever applicable, as per the Limitation Act.

  • For the purpose of renewal, branches should obtain a simple declaration as per the extant guidelines (about crops raised/ proposed to raise) from the borrowers. The assessment of revised MDL requirement of the KCC borrower will be made based on proposed cropping pattern and area declared by him.

  • Eligible crops shall be covered under Crop Insurance Scheme - National Agricultural Insurance Scheme (NAIS)

Disbursement of the Loan

As per the cultivation requirements of the crop, the loan will be disbursed in cash.

Repayment
Kharif (mono)

(1st April to 30th September) - 31st Jan

Rabi crop (mono)

(1st October to 31st March) - 31st July

Double /Multiple Crops

(Kharif & Rabi seasons) - 31st July

Long term Crops

(All round the year) - 12 months (from the date of first disbursement)

Borrowers are required to route their farm proceeds or other credits into the KCC account, with a minimum of loan amount plus interest and other charges, if any, within the repayment due date.

How to apply for the loan

Applicant may contact our nearest branches engaged in agricultural advance or even talk to the marketing officers visiting village.