KISAN CREDIT CARD (UNION GREEN CARD)

The Kisan Credit Card Scheme is a government initiative that aims to provide timely credit support to farmers with flexible and simplified procedures.

Farmers and Self Help Groups (SHGs) or Joint Liability Groups (JLGs) of farmers including tenant farmers, sharecroppers, etc. are eligible for the scheme.

The scheme aims to meet short-term credit requirements for crop cultivation, post-harvest expenses, produce marketing loans, consumption requirements of farmer households, working capital for maintenance of farm assets, and investment credit requirement for agriculture and allied activities.

The credit limit is fixed based on the scale of finance (SOF) X area cultivated, post-harvest/household/consumption needs, repairs and maintenance expenses of farm assets, crop insurance and/ or accidental insurance, health insurance, and asset insurance

No, there is no restriction on the number of debits/credits in the short-term component of the Kisan Credit Card Scheme.

The short-term loan limit arrived for the 5th year + the estimated long-term loan requirement is treated as the maximum permissible UGC limit, i.e., the Kisan Credit Card limit.

The card is normally valid for 5 years, subject to annual review

The long-term loan for investment purposes may be disbursed in one instalment if the loan is for the purchase of a tractor, pump set, animals, etc. If the loan is for any development activity, the same may be disbursed in instalments depending on the progress of the work.

Yes, till a composite card is issued with appropriate software, two separate cards may be issued for CC limit and term loan transactions with two separate accounts.