India, the world’s largest economy, where half of its population is directly or indirectly involved in agriculture, does not even produce 20% of its GDP from agriculture, demonstrating the severity of the situation. On one side, a farmer who generates food for the entire country sleeps on an empty stomach. Whereas on one one we celebrate by preparing food grown by these farmers, on the other hand these farmers are crushed into an eternal cycle of debt and poverty, emotionally harming them and sometimes leading them to suicide. The plight of our farmers is so severe that it must be addressed immediately; we cannot continue to see our farmer brothers and sisters starve and struggle to survive; thus, the government of India launched the KCC Yojana to improve the lives of these farmers by providing them with financial empowerment. This essay will teach you everything you need to know about the Kisan Credit Card and how it can help our farmers.
Eligibility Criteria
The following are the eligibility requirements that an applicant need to fulfill in order to obtain a Kisan Credit Card:
- Any farmer who cultivates his or her own crops on his or her own land.
- Individuals who are both joint debtors and group members. Owner-cultivators must make up the large bulk of the population.
- At the KCC, sharecroppers, tenant farmers, and oral lessees are all welcome.
- Sharecroppers, farmers, tenant farmers, and others create self-help groups (SHGs) or joint liability groups (JLG).
- Farmers who cultivate crops or engage in related activities like animal husbandry, as well as non-farm occupations like fishing.
Benefits of Kisan Credit Card
There are numerous benefits that come along with a Kisan Credit Card, that are as follows:
Low Interest Rates
Kisan credit cards have interest rates as low as 2%, with an average of 4%, exempting farmers from high-interest rates. Farmers under the Kisan Credit Card system can also pay credit during the harvesting period of the crop for which the loan was originally issued, making it more flexible and beneficial for farmers. In addition, the government offers specific incentives and schemes to farmers who use KCC in terms of interest rates, which are determined by the cardholder’s payback history and overall credit history.
Timely Credit
Loans of up to INR 3 lakh are available, with the option of obtaining marketing loans when farmers require funds for agricultural needs such as dairy animals, pump sets, and so on, as well as other linked activities associated with post-harvest expenses. All agricultural and ancillary needs are met by a single credit facility/term loan.
Insurance Cover
Under the Kisan Credit Card Scheme, all Famers receive insurance coverage of up to Rs. 50,000 in the event of permanent incapacity or death, with an extra cover of Rs. 25000 provided in the event of other hazards.
Free Assistance
All farmers who participate in the Kisan credit card system receive free assistance in the purchase of fertilisers, seeds, and other agricultural supplies, as well as in obtaining cash discounts from merchants and dealers.
No Security
Farmers can obtain collateral-free loans of up to INR 1.60 lakh through KCC.
Multiple Repayment Options
All KCC farmers are offered with various repayment alternatives, including the ability to repay the loan during the harvest season of the crop for which the loan was originally granted, as well as a simple disbursement system.
The main objective of launching this best credit cards in India is to empower the Indian farmers by providing them with a credit card. Any Indian farmer who meets the eligibility criteria for the credit card can apply for KCC. However, it is advisable to check the eligibility criteria before applying in order to avoid rejection.
