Details About KCC

Kisan Credit Cards were started by the Government of India, RBI (Reserve Bank of India), and NABARD (National Bank for Agricultural and Rural Development) in 1998-99 to help farmers access timely and adequate credit.
The Kisan Credit Care allows farmers to have cash credit facilities without going through the credit screening processes repeatedly. Repayment can be rescheduled if there is a bad crop season, and extensions are offered for up to 4 years. The card is valid for 3 years and subject to annual renewals. Banks in India that lend for agricultural purposes usually offer the KCC. Withdrawals are made using slips, cards, and a passbook.
KCC OFFERED BY IDBI Crop Loan with Kisan Credit Card
Credit to Farmers/ Group of farmers for Crop Loan, working capital or investment credit for viable agriculture purpose.
Who is the eligible for the Loan? All Farmers/ Owner cultivators, tenant cultivators and Share croppers / Individual farmer having agreement with institution.


The features of the scheme at a glance are:
• Type of revolving cash credit facility with unlimited withdrawals and repayments.
• Meet the production credit need, cultivation expenses, and contingency expenses
of the farmers.
• Limits based on the basis of operational land holding, cropping pattern and scale
of finance. This limit is inclusive of 20% of production credit.
• Each withdrawal to be paid within 12 months.
• Card valid for 3 years subject to annual renewals.
• Credit limits can be enhanced depending on performance and needs.
• Rescheduling is also possible depending upon the situation. If for example the
crops fail due to a natural calamity and the farmer is not able to repay his loan,
then he could get an extension of upto four years.
• Cash withdrawals through slips accompanied by card and passbook.
• A credit cum passbook would be issued.
• All branches engaged in agricultural lending could issue Kisan Credit Cards.

Eligibility
Borrowers with good track record over the past 2 years would be the prime customers.
New borrowers could also be included if they could get proof of operational land
holding from the Patwari.

Target group
Short-term crop loans required by existing/new borrowers

Selection methodology
The farmer would be evaluated by the bank, on financial grounds by looking at his
past record with the bank, and on personal grounds by looking at his reputation in the
village.

Fixation of credit limit
The credit limit under the card may be fixed on the basis of the operational land
holding, cropping pattern and the scale of finance by the District Level Technical
Committee (DLTC) and SLTC. If the limit has not been fixed by the DLTC/SLTC or
the limit in the opinion of the bank is low, appropriate scale of finance for the crop
may be fixed by the bank.

Validity and repayment schedule
A card once issued would be valid for a period of 3 years. The facility may be
extended, the amount enhanced or cancelled, depending on the performance of the
farmer. Repayments are to be made within 12 months of taking the credit.

Margin
• For loan amount upto Rs. 10,000: NIL
• For amount over Rs. 25,000: 15% to 25%

Collateral
• Loan Amount security to be furnished
• Upto Rs. 10,000 DPN (demand promissory note) / loan agreement is needed only
• Rs. 10000 and upto Rs. 25,000 Hypothecation of crops is required.
• Above Rs. 25,000 Hypothecation of crops and mortgage of land (or) third party
guarantee is needed

Interest
This is subject to change.
Amount of Interest for Repayment period:

Upto one year Exceeding one year
• Upto Rs. 25,000 11 % 11 %
• Above Rs. 25,000-Rs. 2,00,000 12 % 12 %
• Above Rs. 2,00,000-Rs. 25,00,000 13.5% 13.5%
• Rs. 25,00,000 and above
(Depending on Credit Risk Rating) 13.25% to 15.5% 13.25% to 15.5%
By March 20, 2001, around 1,32,44,397 cards had been issued by agencies all over the
country, with the amount sanctioned close to Rs. 24615.17 crore. Contributions of
cooperative banks, RRB’s and commercial banks have been 67.35%, 5.7%, and 27%
respectively.