How to Apply for Kisan Credit Card? Get Interest Rate and Eligibility

The government introduced the Kisan Credit Card scheme in 1998 to provide financial support to farmers and help them fulfil various credit requirements. As of 2019, the government plans to launch village wise schemes to reach out to over 1 Crore farmers in 100 days through this scheme.

The purpose of this card is to help farmers avoid falling into debt traps from informal borrowing. This credit card for farmers can help them to pay more easily for various agriculture-based requirements.

Also, the government is steadily making card-based payment methods available for every platform like National Common Mobility Card for transport, debit cards, etc.

What is the Kisan Credit Card?

The scheme provides Indian farmers with a credit card through which they can avail short term loans from designated financial institutions. These short term loans come with low interest, making it easier for farmers to repay their debt. In addition to this, the scheme also provides farmers with a passbook that contains various details regarding loan limit, beneficiary and landholdings.

The credits are provided by lenders in rural regions, state co-operatives as well as public sector financial institutions.

Interest and additional charges on this credit card

According to RBI guidelines, respective financial institutions can set the interest rates and credit limit for this scheme. However, the average applicable interest rate should be between 9-14% per annum. Before applying, check the method for credit card interest rate calculation thoroughly.

Farmers can also avail special subsidies and schemes regarding the interest rate for the card. These additional benefits will be determined based on the general credit history of the farmer.

Charges like processing fee, deed charges for a land mortgage, insurance premium, etc. are determined at the card issuer’s discretion.

Benefits of the scheme

Farmers can avail the following benefits under the Kisan credit card scheme

• Low-interest rates
• A single loan for every agricultural requirement
• Loan repayment facility allowing farmers to repay the advance post-harvest season
• Easy loan disbursal
• Crop insurance
• Avail digitised payment methods similar to National Common Mobility Card.

Who can avail this scheme?

The following are the eligibility criteria to avail this scheme

• Individual or joint borrower farmers who are owner-cultivators of their land
• Oral lessees, sharecroppers, tenant farmers, etc.
• Individuals belonging to joint liability or self-help groups, including tenant farmers, sharecroppers, etc.

The Kisan Credit Card scheme also extends to individuals working in fisheries and animal husbandry sector. Following are the eligibility criteria for the beneficiaries belonging to these sectors

• Aquaculture and inland fisheries

Individual fishers and fish farmers, as well as those belonging to self-help groups and joint liability groups can apply.

• Marine fisheries

Individuals can avail the scheme if they own a fishing vessel or registered boat. They should also have the required license for fishing in the sea or estuaries.

• Dairy

Dairy farmers and tenant farmers who lease, own or rent sheds.

• Poultry

Individual farmers, joint borrowers, tenant farmers for poultry, birds, goats, sheep, pigs, etc. Shed owners are also eligible to apply for the benefits of this scheme.

If you do not comply with the above criteria, you can look for other credit card options at affordable interest rates. For instance, the Bajaj Finserv RBL Bank SuperCard is one such option which can help you avail numerous industry-first features.

How can you apply for the scheme?

If you satisfy the criteria mentioned above, you can apply for the benefits of Kisan Credit Card scheme online. Follow the steps below to apply:

• Visit the lender’s website
• Check the credit card options and choose “Kisan Credit Card.”
• Fill up the required details, attach the documents and click on “Submit.”

You can apply for a credit card online in three steps easily. The lender will then process your application and provide you with the credit.

If you don’t satisfy the eligibility to avail this scheme, you can also avail alternate options like the Bajaj Finserv RBL Bank SuperCard.

Bajaj Finserv also provides pre-approved offers on credit cards that can make availing these quicker and easier. These offers are available on various financial products, including home loans, business loans, personal loans, etc. You can check your pre-approved offers by providing your name and phone number.

Thus, there is no dearth of financing at affordable rates available from Indian lending institutions. However, you should check the eligibility criteria of each institution carefully before applying.