Kisan Credit Card: Get up to Rs 5 lakh KCC loan at 4 per cent interest only; PM Kisan account holders can apply online

Kisan Credit Card (KCC) is one of the major schemes launched by the government to help small farmers. The Government of India (GoI) gives up to Rs 1.6 lakh KCC loan without any collateral or guarantee to the small farmers who hold KCC. As per the tax and investment experts, farmers can take loans up to Rs 5 lakh KCC loan in 3 years. The KCC loan interest rate is also very low at 4 per cent per annum. But, to avail the Kisan Credit Card facility, a farmer must open account under PM Kisan Samman Nidhi Yojana. As the center has made it clear that it is going to distribute around 2.5 crore Kisan Credit Card, it becomes important for the small farmers to know about the benefits of KCC and cheaper KCC loan.

KCC Loan interest rate calculation

Through the Kisan Credit Card, farmers can take a short-term loan of up to Rs 3 lakh in 5 years. Although the loan is available at the rate of 9 per cent, but the government gives a subsidy of 2 per cent on it. In this sense, it stands at 7 per cent. On the other hand, if the farmer returns this loan on time, then he gets a further rebate of 3 per cent. Means, after repaying the first loan on time, the small farmer who holds Kisan Credit Card, becomes eligible for an additional 3 per cent rebate on the KCC loan and then the KCC loan interest rate become 4 (7-3 = 4) per cent.

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KCC online application

The validity of the Kisan Credit Card is five years. On can get up to Rs 1.6 lakh collateral free loan without any guarantee and all KCC loans are covered under crop insurance scheme. The GoI is going to issue 2.5 crore new Kisan Credit Card and hence those small farmers who have account in PM Kisan Samman Nidhi Yojana, should immediately apply for the KCC.

Here is the step by step guide to apply for Kisan Credit Card online:

1] Go to the official site of PM Kisan Samman Nidhi Yojana — pmkisan.gov.in;
2] Download the Kisan Credit Card form;
3] Fill Kisan Credit Card form with the documents of your land, details of the crop, etc;
4] Give declaration that you have not made any other Kisan Credit Card from any other bank or branch; and
5] Submit the application, after which you will get the Kisan Credit Card from the concerned bank.

KCC can be obtained from any Co-operative Bank, Regional Rural Bank (RRB). This card can also be taken from SBI, BOI and IDBI Bank or National Payments Corporation of India (NPCI) that issues RuPay KCC.