What is the Kisan Credit Card? Features and comparison

The Kisan Credit Card (KCC) is a popular credit program in India, which was introduced in August 1998 across the country. The main motive for this credit program is to provide farmers with quick and timely access to affordable credit. The plan was initiated by NABARD and the Reserve Bank of India.
The program aims to reduce the dependence of farmers on informal banks for credit, which is often lucrative but very expensive. The card is offered by cooperative banks, regional rural banks and public sector banks.
Features of the Kisan credit card:
Cooperative banks, regional rural banks, and public sector commercial banks have started the Kisan credit card program. The aspect of this unique facility also includes term loans for agriculture and other activities and is a determining factor for consumer loans. The plan currently offers:
• Insurance coverage for Kisan credit card holders
• Credit to meet the financial needs of farmers, mainly related to agricultural production and other contingencies
• Coverage of harvest loans granted under the KCC program for certain specific crops only
• Protection is provided against crop loss due to pest attacks, natural disasters, etc.
• In some cases, an ancillary warranty must be provided. If the loan amount is more than Rs. 100,000 / -, then the cardholder must offer their land as a mortgage and pledge the crops grown there.
Main banks offering the Kisan credit card:
NPCI – RuPay Kisan credit cards are expected to be offered by the National Payments Corporation of India (NPCI), as part of its national card system for multilateral payments – RuPay.
NABARD – NABARD provides easily accessible term loans and credits to farmers
SBI – Short-term credit is offered by SBI to farmers
Bank of India – Provides flexible financial support to farmers
IDBI – The bank offers KCC to farmers with additional benefits, such as investment credits, crop loans, and working capital to cover agricultural expenses.
Comparison of Kisan credit cards offered by different banks:
Bank name Credit limit Maximum occupancy time Insurance cover
Axis Bank Up to Rs 250 lakhs From 1 year to 7 years old Free accident insurance coverage for farmers up to Rs. 50,000 / –
Bank of India 25 percent of the farmer’s estimated gross income or a maximum of Rs 50,000 Up to Rs 10 lakhs which can be extended for a period of 12 months Invalid
National Bank of India Short-term credit limit set for the first year depending on the crops grown according to the proposed cultivation scheme and the scale of financing 12 months in case of long-term cultures Personal Accident Insurance Plan (PAIS), property insurance and crop insurance are covered
Indian Overseas Bank (IOB) It is based on the finance scale, the culture model and the extent of the culture 5 years Invalid

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