Under the Kishan Credit Card Scheme, KCC accounts are widely used by farmers. ‘KCC’ was first introduced in 1998, intending to make obtaining loans for farms less complicated. This includes loans for various agricultural activities such as cultivation of crops, harvesting, maintenance of their farming equipment, etc.
Loan access to farmers in this scheme is highly friendly at 4% interest. The requisite minimum age for the applicants in this scheme is 18 years, but there is no maximum age limit. The scheme includes a maximum loan facility of up to Rs. 3 lakh. The loan period cap is 5 years. Kishan Credit Card is also valid for 5 years.
Previously, for loans above Rs 1.6 lakhs in KCC loan, the guarantee was compulsory. Now, it is good news that RBI has raised the limit of the guarantee-free loan to Rs 2 lakh. It means that you will be able to borrow up to Rs 2 lakh without any guarantee.
How to Apply for a KCC Loan?
- First, go to the website of the bank you wish to obtain the Kishan Credit Card Scheme.
- Here, you have to select Kisan Credit Card from the list of options.
- Now you will be redirected to the application page once you click Apply.
- Fill out the form with the required details and click on Submit.
- Now you will be assigned an application reference number, and if you are eligible, the bank will contact you within 3 to 4 working days.
These Documents are Required while Applying for a KCC Loan
- Application Form
- Two passport-size Photographs
- ID proof shall be like a Driving License/Aadhar Card/Voter ID card/Passport
- Address proof shall be like a Driving license, or Aadhar Card.
- Proof of land to be certified by revenue authorities
- Crop Pattern (crops grown)
- Security documents for loans above Rs 2 lakh
