Master Circular – Kisan Credit Card (KCC) Scheme
The Kisan Credit Card (KCC) Scheme is applicable to all farmers, including marginal farmers, who are engaged in agricultural and allied activities.
The objective of the scheme is to provide short-term credit to farmers for their agricultural needs, with a focus on simplifying the loan process and reducing the burden of debt.
Eligibility for the scheme is open to all farmers, including marginal farmers, who are engaged in agricultural and allied activities.
The credit limit/loan amount for farmers (excluding marginal farmers) is determined based on the cost of cultivation, post-harvest expenses, and other expenses. For marginal farmers, the credit limit is fixed at ₹50,000.
Disbursement of the loan amount is to be made in cash or kind, and the loan is to be repaid within 12 months.
Electronic Kisan Credit Cards are to be issued to farmers, which can be used to withdraw cash or make purchases.
The validity of the KCC is for a period of 5 years, and it can be renewed annually.
The rate of interest on the loan is to be determined by the bank, and the repayment period is 12 months.
A margin of 15% to 20% is to be maintained, and security in the form of collateral or guarantee is required.
Other features of the scheme include a provision for delivery channels, including mobile banking and other channels.
The account will be classified as a Non-Performing Asset (NPA) if the loan is not repaid within 90 days of the due date.
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