The full form of KCC is Kisan Credit Card

The Kisan Credit Card scheme is a Government of India scheme which provides farmers with timely access to credit. The Kisan Credit Card (KCC) scheme was launched in 1998 with the aim of providing short-term formal credit to farmers and was created by NABARD (National Bank for Agriculture and Rural Development).

The KCC scheme was introduced to ensure that the credit requirements for farmers in the agriculture, fisheries and animal husbandry sector were being met. This was done by helping them avail short-term loans and provide them with a credit limit to purchase equipment and for their other expenses as well.

Moreover, with the help of KCC, farmers are exempt from the high interest rates of the regular loans offered by banks as the interest rate for KCC starts as low as 2% and averages at 4%. With the help of this scheme, farmers can repay their loans depending on the harvesting period of their crop for which the loan was given.

Features and Benefits of Kisan Credit Card

• Farmers are given credit for meeting their financial requirements of agricultural and other allied activities along with post-harvest expenses.
• Investment credit for agricultural requirements such as dairy animals, pump sets etc.
• Farmers can take out a loan of up to Rs.3 lakh and also avail produce marketing loans.
• Insurance coverage for KCC scheme holders up to Rs.50,000 in the case of permanent disability or death. A cover of Rs.25,000 is given in the case of other risks.
• Eligible farmers will be issued a savings account with attractive interest rate along with smart card and a debit card in addition to the Kisan Credit Card.
• Flexible repayment options and hassle-free disbursement procedure.
• Single credit facility/ term loan for all agricultural and ancillary requirements.
• Assistance in the purchase of fertilizers, seeds, etc. as well as in availing cash discounts from merchants/ dealers.
• Credit is available for a period of up to 3 years and repayment can be made once the harvest season in over.
• No collateral will be required for loans amounting up to Rs.1.60 lakh.