“Pradhan Mantri Kisan Credit Card ke vistar ke kaaran humne kisan kalyan ko ek vyapak swaroop main dekha: PM Narendra Modi”
The GOI has taken a landmark initiative by launching the Pradhan Mantri Kisan Credit Card (PM-KCC) scheme. This scheme helps transform the agriculture sector by providing financial support to the farmers. Having been initiated during the year 1988, the Pradhan Mantri Kisan Credit Card scheme has undergone several modifications over the years on account of a blatant need for farmers who wish to receive financial aid for their farming activities without delay. The following paragraphs will discuss its principles of operation, the advantages it offers, and its effects on agriculture in India.
| Loan Aspect | Details |
|---|---|
| Loan Amount | For all farmers other than marginal farmers: Short-term credit limit for the first year: Scale of finance for the crop extent of area cultivated + 10% of limit towards post-harvest/household/consumption requirements + 20% of limit towards repairs and maintenance expenses of farm assets + crop insurance, PAIS & asset insurance.Successive year limit increase: 10%For farmers raising more than one crop: Initial limit determined by crops cultivated. An additional 10% of the limit for every successive year assuming the same cropping pattern. |
| Term Loans | For investments in land development, minor irrigation, purchase of farm equipment, and allied agricultural activities. Quantum is based on the unit cost of assets, existing activities, and repayment capacity. Long-term loan limit based on proposed investments over five years and repayment capacity. |
| Maximum Permissible Limit (MPL) | The restrictions on short-term borrowing for the fifth year plus the anticipated need for long-term loans. |
| Marginal Farmers | Flexible limit of Rs.10,000 to Rs.50,000 (Flexi KCC) depending on the size of the plot, types of crops cultivated, and other activities expenses |
| Animal Husbandry and Fisheries | The scale of finance fixed by DLTC is based on local costs. Fisheries and animal husbandry have specific working capital elements. |
| Security | Applicable as per RBI guidelines.Hypothecation of crops, collateral security based on the loan amount, and tie-up for recovery. |
| Disbursement | Revolving cash credit system which has different avenues for taking out money. A term loan is drawn in fixed installments. |
Also Read:- Pradhan Mantri Jeevan Jyoti Bima Yojana | Pradhan Mantri Suraksha Bima Yojana
Pradhan Mantri Kisan Credit Card (PM-KCC) Scheme: A Saviour For Famers
The Pradhan Mantri Kisan Credit Card (PM-KCC) Scheme was an initiative taken by the Government of India in 1998 to provide financial support to farmers. It acts as a single-window credit system. Farmers get a pre-sanctioned credit limit on a card for their cultivation, post-harvest needs, marketing expenses, and even consumption requirements.
The premise is to give farmers temporary help with borrowing while they grow their food. Farmers require cash for things such as seeds, fertilizer, and other inputs essential for them to produce these crops. It consists of money for day-to-day needs associated with farming practices, capital spending meant for expanding agricultural production plus other related enhancements.
Key Elements of Pradhan Mantri Kisan Credit Card (PM-KCC)
The key elements of the Pradhan Mantri Kisan Credit Card scheme are as follows:
Acesable Interest Rates: Farmers who have Pradhan Mantri Kisan Credit Card cards can get low-interest rate loans as compared to other commercial loans. To keep borrowing costs affordable this scheme provides interest subvention (a subsidy).
Covers Maximum Activities: With this credit card in hand, all types of farming-related tasks can be easily undertaken such as planting and growing plants, acquiring seeds for planting crops, and getting materials for producing fertilizers and pesticides while dealing with irrigation expenditures plus any other cost linked to them.
Flexible Loan Amounts: This scheme provides flexible loan amounts to farmers for agriculture operations according to the requirements of the farmer. It covers both short-term credit as well as medium-term credit loans.
Easy to use and provide Digital Access: Through this scheme, farmers can use credit cards to make electronic transactions as a way of simplifying their access to credit and management of their finances.
Other Schemes:- Pradhan Mantri Ujjwala Yojana | PM Awas Yojana Gramin List 2024
Key Benefits of the Pradhan Mantri Kisan Credit Card Scheme
Below we have mentioned some of the key benefits provided by the Kisan Credit Card Scheme to farmers:
- To meet Monterey necessities farmers are provided with cards for all sorts of exercises, along with post-harvest expenses
- Most of the time Credit is given to rural machines such as pumps or cattle
- Farmers can take an advance up to ₹3 lakh
- In case of any changeless inability or death protection given up to ₹50,000
- Certain qualified ranchers are too issued a charge card and an investment funds bank account
- There are different and adaptable reimbursement options
- In addition to this, there is help given for fertilizers, pesticides, etc this loan will also give discounts back from sellers
- The collection period has to pass before one can have their credit refunded Available loans are valid for a maximum of three years
- No security is needed for loans amounting up to ₹1.6 lakhs
Eligibility Criteria for Pradhan Mantri Kisan Credit Card
The eligible for Pradhan Mantri Kisan Credit Card must meet these criteria:
- Farming activities should engage them.
- They should have land records or tenement slips.
- Individual farmers, cooperative groups, and agricultural producer organizations can utilize the scheme.
Must Read:- Pradhan Mantri Awas Yojana-Urban | Pradhan Mantri Gramin Digital Saksharta Abhiyan
Application Process for Pradhan Mantri Kisan Credit Card
In the form of a Kisan Credit Card, the aim is to make it easier for farmers to get access to credit for farming purposes. This post will guide you through the entire procedure, step by step:
Check Eligibility
Before applying for a Kisan credit card KCC you must ensure the following eligibility criteria such as:
- You must be an active farmer
- You should have proof of your land record
- There is no upper age limit for the card but the bank might check specific requirements
- You should prepare all required and important documents for proof and identity address.
Gather Required Documents: Collect all documents for your KCC application. Identity proof, address proof, land record, passport-sized photograph, income proof.
Visit a Bank or Financial Institution: Visit your nearest bank for KCC. you can visit any public, private, or regional rural bank.
Obtain and Fill Out the Application Form: Take the KCC application form and fill the form with accurate details which include personal details, land details, and details related to the card.
Submit the Application and Documents: Submit the completed application form with all necessary documents to the bank. Ensure that all documents are verified properly and copies are attested if needed.
Verification Process: The bank will verify your form and documents. The bank will evaluate your creditworthiness based on your income, repayment capacity, and other factors.
Approval and Issuance: The bank will approve your form and application and provide you with KCC. You can use this for processing credit and making transactions. Maintain regular updates on your loan and card.
Explore Digital Options: A lot of banks offer online application methods and digital management for KCCs lately: Make sure to verify whether your bank has an online application feature through its website or mobile application. Make use of Internet banking services whereby you can manage your KCC, check your balance as well as follow up on transaction activities.
The Pradhan Mantri Kisan Credit Card (PM-KCC) meditation is one of the chief pillars of India’s Agricultural Policy and it should be viewed as a savior for the farmers. The scheme is meant to be a reliable source of financing through which farmers can make more effective use of their crops and in general, engage in all kinds of economic activities for a better life.
FAQ’s:-
Q1. What is the limit of a Pradhan Mantri Kisan Credit Card loan?
The maximum limit of a KCC loan is up to Rs. 3.00 l. Farmers get a high rate of interest if they deposit their money in the Kisan Credit Card account.
Q2. How to use a Pradhan Mantri Kisan Credit Card at an ATM?
ATMs are used by farmers to make cash withdrawals with a Kisan credit card. That provides enough time for the settlement of debts since it has a 12-month period for its repayment.
Q3. How does money from the KCC account?
Cash withdrawals can be made using withdrawal slips obtained from bank branches and Kisan credit card passbooks; some farmers only while chequebooks can be offered if one has credits of Rs 25000 or more.
