The Government of India aimed to assist farmers financially with the help of Kisan credit cards that offer credit at a subsidized rate of interest. Looking into this venture, currently there are 6.95 crore active Kisan credit cards as of June 2019 issued by financial institutions in India. This is a one-of-a-kind initiative put forth by the government.
What is the Kisan credit card scheme?
Launched in 1988, this government-initiated scheme targeted the farmers to help them meet comprehensive financial needs associated with their profession, i.e. agriculture. This scheme intends to provide eligible candidates with the required monetary aid that can help them prosper in their agricultural venture with ease and convenience.
Financial institutions offering Kisan credit cards for the benefit of agricultural needs look for some basic eligibility conditions that a candidate must meet to avail the card.
Eligibility criteria
Candidates belonging to the following categories can apply for such a credit card and are entitled to avail of the benefits coupled with it.
- Individual farmers or joint borrowers of credit cards that are their own cultivators.
- Joint liability groups and self-help groups including sharecroppers, tenant farmers etc.
- Tenant farmers, oral lessees, and sharecroppers.
Candidates meeting the below mentioned eligibility conditions can acquire the Kisan credit card benefits as offered by the lending institutions.
Benefits of Kisan credit card
- Potential customers have the provision to opt for an increase in the credit limit, which may be approved or declined depending on the agricultural income of the candidate. Therefore, prospective customers can increase a credit card limit and their purchasing power eventually for various agricultural needs be it the purchase of equipment, fertilizer, or implementation of the latest technology.
- Kisan credit card benefits include the facility of crop insurance coverage, under which specific kinds of crops cultivated by the farmer are financially covered against losses. Any harm caused to the crops can be claimed in terms of financial benefits as per the crop insurance scheme.
- Farmers are provided with flexibility in loan repayment. This facility provided by financial companies to pay down their credit card debt is by taking into account the probability of profit/ loss in cultivation as a result of natural calamities or abnormalities. Loan repayment starts after the harvest season as consumers sell the harvested crops.
- Candidates can avail a single loan and meet all agricultural requirements by accessing funds from a single line of credit. This eases the loan repayment as they don’t have to keep track of multiple loan options.
- With Kisan credit cards, consumers are offered loans at a comparatively lower rate of interest as these are intended to uplift the financial standing of farmers.
- Procedure for loan disbursal is now easier with such credit cards. Candidates who aren’t well-versed with the financial procedure can also easily apply and expect quick disbursal of funds in their account. Bajaj Finserv RBL Bank SuperCard is one such card that offers quick application and loan disbursal facility to eligible candidates.
Moreover, financial companies and NBFCs like Bajaj Finserv facilitate user experience with their pre-approved offers on credit cards. Existing consumers can make use of these offers on multiple other financial products as well including business loans, personal loans, home loans, etc. Check out your pre-approved offer in seconds as consumers input their name and contact number.
There is no credit limit fixed for Kisan credit cards as that entirely varies from one financial company to another. While some lenders might have a fixed upper limit for credit cards, some might approve applications of credit card as per the applicants’ income.
Furthermore, candidates must meet the eligibility terms to ensure that is not one of the reasons why their credit card application got declined. Eligible candidates who apply for Kisan credit card can avail the benefits as mentioned above and finance their agricultural needs for a good harvest that can help them earn good revenue. Looking into these eligibility terms and benefits, consumers can decide on the benefits offered and finance their agricultural shortcomings.