The Kisan Credit Card scheme aims at providing adequate and timely credit support from the banking system under a single window with flexible and simplified procedure to the farmers for their cultivation and other needs .

Eligibility

• Farmers - individual/joint borrowers who are owner cultivators;
• Tenant farmers, oral lessees & share croppers;
• Self Help Groups (SHGs) or Joint Liability Groups (JLGs) of farmers including tenant farmers, share croppers etc

Fixation of credit limit/Loan amount

The credit limit under the Kisan Credit Card may be fixed as per scale of finance and Assessment of Term loan investments based on the unit cost towards land development, minor irrigation, purchase of farm equipment’s and allied agricultural activities.
For Marginal Farmers: A flexible limit of Rs.10000/- to Rs.50000/- to be provided based on the land holding and crops grown which may include:

• post harvest warehouse storage related credit needs
• other farm expenses, consumption needs, etc.,
• small term loan investments like purchase of farm equipment’s, establishing mini dairy/backyard poultry

For KCC limit above Rs.25 lakhs, any further requirement for allied activities /investment credit should be allowed under a separate term loan.
To all farmers other than Marginal farmers :
Short term limit is arrived basing on scale of finance * area cultivated plus 10% of limit towards post harvest for household/ consumption needs  plus 20% of limit towards repairs and maintenance of expenses of farm assets + crop insurance and/or accidental insurance including PAIS etc for the first year.
From second year onwards 10 % of the limit towards cost escalation for increase in SOF will be considered.

Repayment period

• The repayment period may be fixed as per anticipated harvesting and marketing period for the crops for which loan is granted.
• The term loan component will be normally repayable within a period of 5 years depending on the type of activity / investment as per the existing guidelines applicable for investment credit.

Margin:

For crop loans, no separate margin.
For term loan component, margin will be:

• UptoRs 1.60 lakh – NIL              
• Above Rs 1.60 lakh – 10-15%

Security

• Up to Rs.1.60 lakh- Hypothecation of crops
• Above Rs.1.60 lakh - Mortgage of land and/or third party guarantee in

                             Addition to hypothecated crops/assets.

Other features:

• Interest subvention/incentive for prompt repayment available as per norms.
• Besides the Crop Insurance, KCC holders have the option to take benefit of Asset Insurance, Personal Accident Insurance scheme (PAIS), and Health Insurance.

Forms & Documents

• Appropriate DPN note  ,Hypothecation agreement , Deed of Guarantee, Declaration /undertaking for Agriculture advance, Mortgage deed, Letter of Continuity, Letter of general lien and setoff, Letter of undertaking from borrower / Guarantor for disclosure  CIBIL and any other document stipulated in sanction.