As of August 17, 2020, the Government of India has extended 1.22 crore kisan credit cards to farmers, with limits of more than Rs.1 lakh on each. Kisan credit card or KCC scheme is an initiative that looks to offer credit to farmers at affordable rates. Before this facility was introduced, farmers mostly relied on loans from the unorganised lending sector. They availed such credit at higher rates, which created immense financial strain during repayment.
Today, eligible farmers can take advantage of applying online for a kisan credit card for easy access to funds. Such options come with several useful features and benefits, specifically tailored to the needs of agriculturists.
Features and benefits of using a kisan credit card
To reduce the financial strain on farmers, such a credit card comes bearing the following features and benefits –
- Revolving line of credit
If a card user is unable to pay his/her bill in time, the outstanding sum is carried over to the next month’s statement. Moreover, only nominal interest is applicable when a farmer is unable to service such dues, thereby easing financial burden significantly.
- Simple application procedure
With the kisan credit card online apply, eligible applicants can ensure convenience when availing such financial products. They can download the application form and take a print out of the same. Next, they need to head to their chosen financial institution and submit the filled up form, along with the necessary documents to complete the application process.
- Collateral-free credit of up to Rs.1.60 lakh
One of the reasons why credit cards are better than debit cards is that you can avail hassle-free advances from the former. In this regard, a kisan credit card can offer immense benefits. Eligible cardholders can avail unsecured loans of up to Rs.1.60 lakh from their card providers. Farmers can also collateralise assets to avail secured credits of up to Rs.3 lakh from such cards.
- Credit limit can increase with responsible usage
If one is punctual regarding repayment of his/her kisan credit card bills, he/she may receive a higher credit limit after a year or two of use. Thus, one of the tips to get the most out of your credit card, KCC or otherwise, is to maintain a decent repayment history. Doing so should help you become more creditworthy and avail substantial advances.
- Additional insurance facilities
Card Holders qualify for insurance coverage of up to Rs.50,000 for death and up to Rs.25,000 for accidents leading to permanent disabilities. This additional safeguard can help a farmer’s family members in case the bread earner suffers a serious accident in his/her line of work.
Additionally, KCCs are available to not only owner-cultivators but also for farmers cultivating on others’ agricultural land. Before opting to apply online for a kisan credit card, one should also find out whether he/she is eligible for the same to improve the chances of quick approval.
How to apply online for a kisan credit card?
Before undertaking the following steps, an applicant should know that not all financial institutions allow for online applications, and you should select the card provider accordingly. With that in mind, here are the steps to ensure a smooth online application process –
- Step 1: Navigate to the agricultural lending section on your card provider’s official website.
- Step 2: Fill up the application form and click on submit.
- Step 3: Await document verification after the application is processed.
Nevertheless, eligibility criteria are one of the important things to know before applying for a credit card. It should help simplify the application process considerably.
Premium cards, such as the Bajaj Finserv RBL Bank SuperCard, come with additional benefits, such as robust security features and accelerated reward points. These typical benefits can be unavailable under several standard cards.
The concerned card provider also extends pre-approved offers to simplify the credit availing process. These offers are available on a range of credit options, including personal loans, business loans, credit cards, and more. You can check your pre-approved offer by providing a few essential details.
For farmers, the KCC scheme has paved the way for affordable credits. These cards can thus help them build a respectable credit history with responsible usage while offering various other unique benefits.