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Sarkari Yojna

Kisan Credit Card Yojana 2023: Farmers will get 1.6 lakh, apply today!

The objective of Kisan Credit Card Scheme 2023 is to support the farmers of India, which is the main contributor to the development and progress of the country. The government recognizes the hard work of the farmers who are responsible for feeding the nation and wants to provide financial assistance and benefits to them. Both the central and state governments have implemented various programs from time to time to improve the livelihood of farmers.

The central government offers various schemes to help the farmers, such as Pradhan Mantri Fasal Bima Yojana, PM Kisan Yojana, Maandhan Yojana and Kisan Credit Card Yojana. In this article, we will focus on Kisan Credit Card Yojana. Launched in 1998, this scheme is a joint effort by the Central Government, Reserve Bank of India and NABARD. They provide low interest loans to farmers using their agricultural land as collateral.

kisan credit card scheme 2023

Kisan Credit Card Scheme 2023, also known as Pradhan Mantri Kisan Credit Card Yojana 2023, was established in 1998 by the Central Government in partnership with NABARD and Reserve Bank of India. The purpose of this scheme is to get low interest loans from the banks for the farmers for their agricultural expenses. Small farmers can avail loans up to INR 3 lakh at an interest rate of only 7%. Additionally, those who repay their loan within one year get an additional 3% discount.

Reasons for starting KCC scheme

Before the Kisan Credit Card (KCC) scheme was introduced, farmers had to depend on village moneylenders for their financial needs. However, the loans given by these moneylenders came with high interest rates, which made it difficult for the farmers to repay the loans and escape their clutches. In some cases, farmers had to mortgage their house property or agricultural land to get the loan.

The objective of KCC Yojana is to get low interest loans from banks with more favorable terms to the farmers. If you are a farmer and interested in getting information about KCC scheme or loan, then this article will give you a comprehensive overview.

Required Documents for Agriculture Loan (KCC)

Documents required for Kisan Credit Card (KCC) loan:

  • affidavit
  • aadhar card
  • pan card
  • passport size photograph

Additionally, the bank may require certain documents to be generated by the Tehsil, such as NEC or LSR (Barahsala). While Barahsala (12-year search report from the tehsil) is normally only required for loans above INR 1.60 lakh, it may still be requested in some cases. While applying for the KCC loan, the farmers need to provide the bank with the documents listed along with their Ori, Khatauni and share certificate.

Time limit for Kisan Credit Card Yojana 2023

Tenure of KCC loan: 5 years with annual interest payment and renewal required after completion. It is necessary to renew the loan after 5 years by submitting updated documents to the bank. However, the interest on the loan needs to be paid annually throughout the tenure of the loan.


Objectives of Kisan Credit Card

The main objectives of Kisan Credit Card Yojana are:

  • Providing financial assistance to farmers for their agricultural needs
  • To help farmers get rid of moneylenders and get loans from banks at low interest rates
  • To ensure that the farmers have the necessary funds for sowing, harvesting, purchasing seeds and other farming activities
  • To improve the financial stability of the farmers.
  • However, despite the success of the scheme, some farmers may still face challenges such as corruption and inefficiency in the loan disbursement process.

Benefits of Kisan Credit Card Yojana

KCC loans have low interest rates, which makes it easy for the farmers to repay the loan without any burden.
With the help of Kisan Credit Card, farmers can easily and quickly avail credit facilities from banks.
KCC card removes the need for multiple visits to the bank for loan disbursement and documentation, making the process farmer friendly.
The card also works as an ATM card, which allows farmers to withdraw cash from ATMs for their day-to-day transactions.
The government has also made provisions for crop insurance, which makes it easier for farmers to protect their crops from damages caused by natural calamities.
Overall, the objective of the Kisan Credit Card Scheme is to improve the financial stability and livelihood of the farmers, so that it becomes easier for them to meet their agricultural needs.

Kisan Credit Card Yojana Interest Rate

The interest rate for Kisan Credit Card (KCC) loan is 4-5% per annum if the loan is repaid on time. If there is a delay in payment, the interest rate can go up to 12-13%. KCC is a cash credit loan, which means it allows the farmer to make deposits and withdrawals any number of times during the loan tenure. Interest has to be paid within one year, and depositing it before the due date can get 3% subsidy on the interest amount. Failure to deposit interest on time can lead to increase in interest rate. It is important that the farmer makes timely payments to avoid paying high interest rates.

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