The Kisan Credit Card is a credit card to provide affordable credit for farmers in India. It was 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 for their farming.
The Kisan Credit Card allows farmers to have cash credit facilities without going through time-consuming bank 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. Withdrawals are made using slips, cards, and a passbook.
According to Union Budget 2012-13, Finance Minister Pranab mukherjee announced that from now Kisan credit cards can be used at ATMs. This is a very positive steps taken by the finance ministry for the Kisan Credit Cards holders. Now they can withdraw money from ATMs directly without even going to the bank.
According to the present Kisan Credit Card Scheme, the card is valid for 5 years, of which crop loan and working capital components have to be renewed annually. Maximum Limits Rs. 50000/- for Rabi Crops. Rs. 50000/- for Kharif Crops. Eligibility Individual / Society. Repayment period Kharif 31 January Rabi 31 July. 5 Collateral Security Charge on land in case loan is above Rs. 10000/- and two sureties if loan is below Rs. 10000/-.