Kisan Credit Card Scheme

Kisan credit cards can be obtained from various banks. All the cooperative banks, regional rural banks and public sectors banks in India offer the kisan credit card. The card is offered only to farmers and any farmer in India can avail this card. Apart from farmers tenants and crop sharers can also avail the facilities provided by this card. The kisan credit card has helped a lot of farmers. Following are the main benefits of using a kisan credit card:

• The kisan credit card offers simplified process of getting short term credit.
• The kisan credit card is available hassle free as the farmers do not have to go through a tedious process of document screening and verification.
• The disbursement of the credit is hassle free.
• The kisan credit card offers flexible repayment options to the farmers. Due to this the farmer can make repayment of the credit as per farmers convenience i.e. the farmers can repay the credit amount after the harvest of crops. Also in case the farmers have a bad harvesting season then he can push the repayment to the later date.
• The card is a total umbrella that will satisfy all the financial needs of the farmer related to agricultural requirements.
• Credit that is disbursed is available and valid up to 3 years and that too without any seasonal appraisals.
• The credit limit is determined by the income received from agricultural process.
• Assistance is provided for purchasing of agricultural products like the fertilizers, seeds, pesticides etc.
• With the kisan credit card farmers also get assistance in availing cash discounts from the dealers of agricultural products.
• Farmers can withdraw amount maximum up to the credit limit from the kisan credit card also the bank has not put any restriction on the number of transactions to be done in a day neither on the amount of cash that is to be withdrawn.
• The credit limit is set by considering the annual agricultural expenses and requirements.
• the credit is available at a lower rate of interest.

For a farmer to obtain a kisan credit card is simple. Farmer has to give details regarding the area of land holding is there in his name and the details of income earned from that land. The bank then analyses the land holdings and the income earned from it and offers credit limit on the kisan credit card. Another important aspect that is considered by bank while offering kisan credit card is of good credit history. If the farmer has previously taken loan or credit and has a good history of repayment then it is very easy to be eligible for obtaining a kisan credit card. Along with kisan credit card the farmers also receive facilities like bank passbook in the name of farmer, particulars of all the land holding held by the farmer, details regarding the validity period of the kisan credit card, credit limit on the kisan credit card etc. all these details are unique for every farmer and is an identification proof of the farmers. All these details are very important as they are helpful in tracking the transactions of farmer.

The use of this credit card can be done at all the outlets for doing necessary purchase or this credit card can also be used for withdrawal of cash. Withdrawal of cash from credit card is a unique feature offered on kisan credit card. This feature is very helpful for farmers as they are in need of liquid cash for purchasing seeds, fertilizers, pesticides, payments to labours etc. Farmers can withdraw cash up to the credit limit offered to them by the bank. Withdrawing the cash can be done by using withdrawal slips available at the bank branch and the kisan credit card passbook. Cheque book facility is also available to the farmers who have a credit limit of Rs 25000 and above. Farmer who has cheque book facility can withdraw the cash from kisan credit card using cheque book. Thus the farmer can make use of the kisan credit card as per his convenience.

The kisan credit card scheme offers following features:

• it offers credit to farmers to carry out agricultural activities and all other allied activities associated with agriculture.
• The kisan credit card offers additional credit for crop production and a contingency fund.
• The cardholders of kisan credit card are offered insurance cover.
• The Kisan credit card holders can also avail national crop insurance scheme that is available for certain crops.
• The kisan credit card scheme provides protection towards loss of crop due to natural calamities, pest attack etc.

Above are the features of kisan credit card that can be availed by farmers.

Following is the list of top banks that offer kisan credit card to the farmers:

• NABARD: NABARD is a bank of the farmers and it offers long term credit facility to the farmers in order to meet their agricultural requirements.
• SBI: State Bank of India is peoples bank and it offers credit facilities to farmers to cover for their agricultural and allied activities.
• Bank of India: Bank of India has introduced various schemes by keeping in mind the needs of farmers and that too at lower rate of interest.
• IDBI: IDBI bank offers credit facility to farmers in order to overcome and meet financial requirements for carrying out farming.

Thus, above are the top banks offering credit facility and extending kisan credit card scheme to farmers to help them carry out agricultural activities smoothly.