The Kisan Credit Card (KCC) scheme, introduced by Indian banks in August 1998, is a credit facility. KCC credit customers receive personal accident insurance coverage of up to $25,000 for general risks and up to $50,000 for death and permanent disability. This loan is the loan that is given out to individuals to sort out their emergencies.
Most times, farmers suffer losses, as there tends to be disease spread and most of their crops could even be affected. However, there is hope for them as the KCC scheme introduces KCC loans to us. Now we don’t have to freak out in any situation, as there is a KCC loan that stands against death and even permanent disability. It also offers short-term loans to farmers at a low interest rate of 4%.
Who is eligible for KCC?
Eligibility for the KCC loan requires applicants to possess a production credit of Rs. 5,000 or higher. Additionally, the KCC loan is available for crop production, non-farm activities, or other allied undertakings. The farmers must show proof of their identity and address before they can get the Kisan credit card.
Can I apply for a KCC loan online?
Generally, you can apply for the KCC loans online, and all you need to do is follow the instructions below.
- Visit the homepage and click on the Download KCC Form tab.
- The PDF form for the KCC application will be shown.
- Print the application form.
- Fill in the required details in the application form.
- Put in all the necessary and needed paperwork and visit the bank you want to borrow a KCC loan from.
What is the benefit of a KCC loan?
The benefit of a KCC loan is that KCC holders are covered from financial losses of up to Rs 50,000 against death, permanent total disability, and loss of limbs or eyes. Moreover, borrowers just have to pay a premium of Rs. 15 for single-year terms and conditions and Rs.
What is the rule of the KCC loan?
Some rules govern every firm that does the business of lending money to individuals, and a KCC loan is not an exception. KCC offers short-term loans to the farmer at an interest rate of 4% on the condition of due payment. Interest is charged according to the government-run State Bank of India, and the interest rate is just 3%, which is applicable if the individual or farmer pays on time, which means banks will only charge interest on the loan at a simple interest rate.
How do I withdraw money from KCC?
To withdraw money from a KCC loan is very simple, as farmers can withdraw cash up to the credit limit that is given to them by the bank. You can withdraw the money by using the withdrawal slip in the bank and the Kisan credit card passbook. The checkbook facility is also available to farmers who have a credit limit of Rs 25000 and above. This means the individual’s credit score must be good and firm.
