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Kisan Credit Card was a scheme introduced by the government in 1999 to offer short term working capital loans to farmers. Some of the main features and benefits of kisan credit card are listed below. 

1. Along with short term requirements, farmers can also get long term loans for expenses such as equipment. 
2. Term loans up to Rs. 3 lakhs against collateral and Rs. 1.6 lakhs without collaterals 
3. Credit limit is decided by the bank depending on the requirements of the farmer 
4. Kisan Credit Card interest rate varies between institutions, between 7-12%. 
5. 3% rebate from government in case of timely repayments 
6. Kisan Credit Card validity for 5 years with an option to extend for 3 years. 
7. In case of failure to pay, unpaid amount is added to next statement at nominal interest charge. 
8. Kisan Credit Card also provides an insurance cover of Rs. 50,000 against death and permanent disability and Rs. 25,000 against other risks. 

What is the eligibility for a Kisan Credit Card? 

1. Individual or joint borrower involved in farming activities 
2. Individual owner who is also a cultivator 
3. Tenant Farmers 
4. Self Help Groups 

How to apply for a Kisan Credit Card? Kisan Credit Cards are issued by several bank authorized by the government. One can apply in any bank branch. The borrower needs to submit a filled Kisan Credit Card application form along with identity, address proof and photograph. Other than this the bank may need some documents to prove eligibility. Some banks permit online application. The card is delivered to borrower’s address in a few days after verification of documents. 

Latest updates on Kisan Credit Cards 

1. Government provided 2% subvention against all KCC loans 
2. 3-month moratorium to kisan credit card holders. 
3. 10% limit allowed to be used for household expenses. 
4. 2 lakh crore concessional credit announced to counter effects of covid-19 pandemic 
5. Now extended to fisheries and animal husbandry.