State-owned Banks Have Been Instructed to Offer All Farmers Access to Kisan Credit Cards

The government of India and other apex bodies have introduced various measures to assist farmers and people in the agricultural sector to access funds easily. One such measure is the Kisan Credit Card scheme. Recently, the government made it easier for eligible farmers to access this credit facility with its new mandate.

The Indian Government’s Instruction to State-Owned Banks in India

Earlier this year, ahead of the Union Budget in January 2023, the Indian government took a significant step to make the lives of farmers easier. The government directed all state-owned banks or public sector banks to provide the Kisan Credit Card to all the farmers in the country. 

The heads of these public sector banks were instructed to rely on the PM KISAN database to undertake this initiative promptly and thoroughly. This measure will make it easier for eligible farmers across the country to obtain credit facilities and purchase agricultural raw materials as needed. 

What is the Kisan Credit Card Scheme?

The Kisan Credit Card Scheme was introduced by the National Bank for Agriculture and Rural Development (NABARD) in 1998. The scheme aims to offer adequate and timely credit to farmers in the country under a single window supported by the Indian banking system. 

Its primary objectives are as follows:

• To meet the short-term credit requirements of farmers for the cultivation of crops
• To help farmers meet post-harvest expenses
• To offer marketing loans to eligible farmers
• To help farmers meet the consumption requirements of their households
• To facilitate access to working capital for maintaining farm assets and allied agricultural activities 
• To offer investment credit for agriculture and allied activities

Kisan Credit Card Eligibility

The criteria to determine eligibility for the Kisan Credit Card are as follows:

• Individual farmers who are owners and cultivators 
• Joint individual borrowers who are owner cultivators
• Tenant farmers
• Oral lessees 
• Sharecroppers
• Self-Help Groups (SHGs) of individual farmers, tenant farmers, sharecroppers, etc.
• Joint Liability Groups (JLGs) of individual farmers, tenant farmers, sharecroppers, etc.

This sums up the Kisan Credit Card eligibility criteria. If you are eligible for the Kisan Credit Card, apply for the same from a public sector bank near you. Additionally, the government has directed state-owned banks to offer Kisan Credit Cards to all farmers. This will make it much easier for new applicants to obtain the credit facility. 

Features and Benefits of the Kisan Credit Card Scheme

The Kisan Credit Card scheme offers the following beneficial features to eligible farmers. 

• Revolving cash credit facility 
• Waiver of collateral requirement for loans up to ₹1.6 lakhs
• Savings account for eligible farmers
• Kisan Credit Card valid for a period of 5 years
• Limit subject to review and increase based on repayment history
• Conversion or rescheduling of the loan if crops are damaged on account of a natural calamity 
• Debt repayment is to begin only after harvest season.
• Insurance cover for eligible crops under the Pradhan Mantri Fasal Bima Yojana (PMFBY)
• Optional personal accident cover and health insurance for the borrower

How to Apply for the Kisan Credit Card Scheme?

If you want to enjoy the above-mentioned advantages offered by the Kisan Credit Card, apply for the scheme online or offline. The step-by-step guide mentioned below can help you with this. 

Applying for the Kisan Credit Card Facility Online

• Step 1: Visit the website of any private or public sector bank that offers this scheme. 
• Step 2: Under the relevant section (like ‘Loans’ under the ‘Agriculture and Rural’ banking segment), click on the ‘Kisan Credit Card’ option. 
• Step 3: Select the ‘Apply Now’ option.
• Step 4: Enter the details required in the online application form and attach the documents required (like ID proofs, address proofs, cropping pattern, security documents, and certified proof of landholding). 
• Step 5: Submit your application along with the required paperwork. Once your application is scrutinized and approved, your loan will be granted. 

Applying for the Kisan Credit Card Facility Offline

• Step 1: Visit the nearest branch of a private or public sector bank. 
• Step 2: Ask for the application form for the Kisan Credit Card scheme. 
• Step 3: Fill out the form completely and accurately.
• Step 4: Attach the required documents and submit the application form at the bank branch.  

Conclusion

This measure taken by the government is expected to make it easier for farmers in the country to access the necessary credit facilities they need. If you are in the business of farming or agriculture, ensure that you check your eligibility for the Kisan Credit Card. You can then apply for the same promptly to enjoy its benefits. 

You can now approach the nearest branch of any state-owned bank and apply for this card. Alternatively, you can even apply for the scheme online from the comfort of your own home. Whichever option you choose, ensure that you submit the required documents in full to facilitate faster approval.