Master Circular – Kisan Credit Card (KCC) Scheme
The Kisan Credit Card (KCC) Scheme is designed to provide credit to farmers for their agricultural and allied activities.
Applicability: The scheme is applicable to all farmers, including marginal farmers, who are engaged in agricultural and allied activities.
Objective: The objective of the scheme is to provide adequate and timely credit to farmers to meet their production credit requirements.
Eligibility: All farmers, including marginal farmers, are eligible for the scheme.
Credit Limit/Loan Amount: The credit limit/loan amount is fixed based on the crop-wise scale of finance, and for marginal farmers, it is fixed at ₹1.60 lakh.
Disbursement: The loan amount is disbursed in cash or kind, and the disbursement is made within the drawing limit of the concerned year.
Electronic Kisan Credit Cards: Electronic Kisan Credit Cards are issued to farmers, which can be used to withdraw cash or make purchases.
Validity/Renewal: The KCC is valid for a period of 5 years, and it can be renewed annually.
Rate of Interest (ROI): The ROI is fixed by the banks, and it is subject to change from time to time.
Repayment Period: The repayment period is fixed based on the crop cycle, and it ranges from 1 to 5 years.
Margin: The margin is fixed at 10% to 20% of the loan amount.
Security: The security required for the loan is fixed based on the loan amount, and it can be in the form of collateral or guarantee.
Other Features: The scheme also provides for other features such as insurance coverage, and delivery channels such as mobile banking and other channels.
Classification of Account as NPA: The account is classified as a Non-Performing Asset (NPA) if the loan is not repaid within the specified period.
Delivery Channels: The scheme provides for various delivery channels such as issue of cards, type of card, and mobile banking/other channels.
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