Kisan Credit Card Scheme: The Kisan Credit Card (KCC) Scheme was a model agriculture loan scheme prepared by NABARD in August 1998 and RBI advised to implement the same by all commercial banks in India in 1998. After series of request from farmers, NABARD and RBI revised the whole KCC Scheme to suit the farmers' current needs. As per RBI directives, revised KCC scheme shall be referred to as the "Scheme to cover term loans for agriculture and allied activities under Kisan Credit Card Scheme".
Objectives of SBI Kisan Credit Card (SBI KCC)
SBI Kisan Credit Card (SBI KCC) to provide timely and adequate credit to farmers to meet their production credit needs (cultivation expenses) besides, meeting contingency expenses.
Eligibility for SBI Kisan Credit Card
Agricultural borrowers having good track record for the last 2 years.
KCC - Nature of Facility
1. Cash Credit: Entire production credit requirement for the full year. Credit requirements for ancillary needs such as maintenance of agriculture machinery / implements, electricity bills, diesel charges & unforeseen credit needs related to crop production, be made upto 20% of aggregate scale of finance without cap.
For meeting contingent needs pertaining to expenses such as, medical, education of children, birth, funerals, marriage & other religious ceremonies, consumption limit
upto 25% of total peak level limit without cap.
2. Term Credit: For allied activities such as pump sets, land development, plantation, drip irrigation, and allied to agricultural activities such as dairy farming, sheep breeding, fisheries, bee keeping etc.
Credit Limit of KCC Bank Loan
Production credit limit Rs. 3,000/- and above (reduced to Rs.1,000/- in Uttarakhand State). Credit limit based on operational land holding cropping pattern and scale of finance.
The total limit is inclusive of 20% of production credit. Limit is valid for 3 years subject to annual review.
Withdrawal - through withdrawal slips and cheque books for literate borrowers having credit limit of Rs. 25,000/-and above. ATM cards can also be issued for withdrawals.
Since Scale of Finance (SOF) is applied for financing -“No further margin to be insisted upon irrespective of any amount.
Security of KCC bank Loan
KCC Limit upto Rs 1 lac: Primary – Hypo of Crops, Collateral – NIL.
Personal Accident Insurance For KCC bank Loan
Personal Accident Insurance upto age of 70 yrs to the extent of Rs. 50,000 on death/disability. Rs. 25,000 on Partial disability. Premium (for one year) Rs.15 (10-Bank, 5-Bor.).
Anant Geete Committee Recommendations for KCC Loan
Anant Geete committee - Notice to be displayed at all branches i.e. KCC to be issued within 15 days. You can download Anant Geete Committee Directives of RBI and its recommendations in pdf format here.
Interest Rate of Kisan Credit Card
Crop Loan: As per the instructions issued by Govt. of India in 2013-2014, crop loans upto Rs. 3 lakhs must be given at the rate of 7% per annum and there must be 3% interest subvention to prompt repaying farmers, thus the efffective interest rate will be kept at 4% per annum.
For Term Loan: As per limit amount & credit rating in agri. sector.
Repayment Period of Kisan Credit Card
Cash Credit Scheme: Crop loans as well as working capital for agriculture and allied activities to be provided as revolving cash credit limit repayable in 12 months.
Term Loan: Repayable within a maximum period of 5 years, depending on the type of activity / investment and repayment capacity.
Personal Accident Insurance Scheme (PAIS) for Kisan Credit Card
All KCC holders are covered under PAIS (Personal Accident Insurance Scheme) under this master policy the premium of Rs. 9/- for a one year policy and Rs. 27/- for
a three year policy, is shared between the farmer and the bank in the ratio of 1:2 to be paid in advance. Risk coverage under the scheme ranges from Rs. 25,000/- to
The policy will cover the KCC holder upto the age of 70 years.