Kisan Credit Card (KCC) Scheme

Objective

To provide farmers with adequate and timely access to credit to meet their credit needs (agricultural expenses), as well as to meet expenses related to allied activities and contingencies. This credit facility is provided on an as-needed basis through a simplified procedure.

Who is eligible for this loan?

• All farmers – single/joint borrowers who are owner cultivators.
• Tenant farmers, oral lessees, and joint farmers etc.
• Self-help groups or joint liability group farmers including tenant farmers, joint farmers, etc.

Loan Amount

• Short term loan limit is provided for the first year which will be based on the proposed cropping pattern and crops grown as per the scale of finance.
• Post-harvest / domestic / consumption needs and expenses related to maintenance of agricultural assets, crop insurance, Personal Accident Insurance Scheme (PAIS) and asset insurance.
• This limit will be increased by 10% in each subsequent year (2nd, 3rd, 4th year). For the 5th year, farmers will be sanctioned a short term loan limit approximately 150% more than the first year.
• While determining the KCC limit, investment requirements of small amounts in the form of agricultural machinery/equipment (such as sprayers, ploughs, etc.) which will be payable within a period of one year will be included. (This portion of the loan will not be automatically included during the second to fifth year, but the loan requirement for this portion will be included in each year while calculating the maximum withdrawal limit for the respective year).
• The short term loan limit for the fifth year, along with the investment credit requirement (highest in five years), will be the Maximum Permissible Limit (MPL) and will be sanctioned as the Kisan Credit Card limit.
• Estimated investment credit limit required along with the short term credit limit worked out for the first year (MDL).

Properties / Features

• KCC borrowers will be issued an ATM cum Debit Card (State Bank Kisan Debit Card) to enable them to make withdrawals from ATMs and POS terminals.
• The KCC will be in the form of a diversified account. Any balance in this account will earn interest similar to a savings account.
• There is no processing fee for KCC up to Rs 3 lakh.
• Collateral security is exempted for the following:
  • Up to a limit of Rs 1 lakh.
  • For loan limits up to Rs. 3 lakh in respect of which tie-up arrangement has been put in place for recovery.
• KCC accounts are required to be renewed annually, well in advance of the due dates, to ensure continued credit limits for five years. Branches must obtain renewal letters before the expiry of three years, as required under the Limitation Act.
• Keeping in mind the purpose of this renewal, branches should obtain a simple declaration from the borrowers (regarding the crops grown/proposed crops). The revised MDL requirements will be determined based on the proposed cropping pattern and the area declared.
• Eligible crops will be covered under the crop insurance scheme – National Agricultural Insurance Scheme (NAIS).

Disbursement of Loans

Loans will be disbursed in cash as per the harvesting needs of the crops.

Repayment Schedule

Crop Type	Season Period	Repayment Due Date
Kharif (Single)	1st April to 30th September	31st January
Rabi (Single)	1st October to 31st October	31st July
Double/Different Crops	Kharif and Rabi Crops	31st July
Long duration crops	Throughout the year	12 months (from first disbursement)

Borrowers are required to deposit their agricultural income or other deposits in the KCC account by the repayment date, which should be equal to the minimum loan amount along with interest and other charges.

How to apply for a loan

Applicants may contact any of our nearest branches dealing in agricultural advances, or they can also contact any marketing officer who visits the villages.