Kisan Credit Card Loan

8 Facts That Nobody Told You About KCC Loan

in Business

Kisan Credit Card or KCC is a significant initiative by the Government of India to develop agriculture and those involved in the sector from the grassroots. Started to aid farmers with their agricultural and related needs; currently, around 6.95 cores active KCC benefit from this scheme. With applications pouring in, the government has directed financial institutions to approve eligible farmers within 2 weeks of their application. This high number of users shows the success of this scheme launched by the government.

Nevertheless, it is vital for users to learn the numerous facts involving KCC loans so that they can decide correctly if it is the right scheme for them. In case they require higher credits and related financial benefits, they can always choose regular unsecured credit cards.

The vital facts pertaining to Kisan credit card are discussed below.

1. Comprehensive financing

These lines of credit have no end-use restriction. As a result, farmers can use the funds available through the Kisan credit card for any financial requirement. This includes funds to buy seeds, working capital, irrigational expenses, etc. Especially farmers like sharecroppers, tenant farmers, etc. can avail Kisan credit card loans to meet all their farming necessities.

2. Easy eligibility

Any farmer between the age of 18 and 75 years can apply for this scheme. In case a farmer is above 60 years of age, a co-applicant is mandatory. Even joint liability groups and joint cultivators are eligible for application.

3. Minimal requirements

The only documents which must accompany the application form for this loan option are identity proof, address proof, and land-related documents. This is distinctly different from the documents required for most credit card applications where income proof and other related documents are necessary.

4. Convenient application procedure

The application procedure for KCC loans can be completed very easily online. For farmers who want to apply, it is best to visit any branch of the financial institution of their choice, along with all their documents.

5. Fast approval

Generally, the approval of these loans is completed within a few days of application. Although currently farmers are forced to wait for longer time periods, the government, as well as all financial institutions, are taking initiatives to complete pending loan approval.

Applicants should check the different ways to check their credit card application status so that they can track the processing properly.

6. Integrated insurance

A major advantage offered by the Government of India is that of insurance cover for the farmers who avail the KCC scheme. This insurance policy comes integrated with Kisan credit card and covers a farmer from both personal accidents as well as a loss of their farming asset.

7. Low interest

While the best credit card issuers offer longer grace periods to repay the credit availed, KCC users get to enjoy subsidized interest rates for the repayment of their loan. This 2% subsidy is enhanced to a total of 4% for farmers repaying within time.

8. Post-harvest repayment

It can be difficult to repay a credit card debt, especially with seasonal products like agricultural harvests. In the case of Kisan credit card, farmers have the option to repay their credit debt after harvest. Additionally, they can also extend the repayment tenor in case there is a bad harvest.

The features discussed above make KCC loans a very attractive option. Nevertheless, if a farmer requires a higher credit amount for purchases and transactions beyond just agricultural requirements, they should opt for feature-rich credit cards offered by top financiers. For instance, the Bajaj Finserv RBL Bank SuperCard comes with various industry-first benefits such as ATM cash withdrawals and personal loans against the card with interest-free periods.

Farmers looking for the best credit card should check features like credit limit, additional charges, reward points, interest rates, etc. Additionally, applicants should also look up all simple tips to get the most out of their credit cards. This can result in immense savings on the part of a credit card user.

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