In February this year, 19 Club members had applied and received Kisan Credit Cards (under a NABARD scheme). Like most credit cards, Kisan Credit Cards too, have a credit limit that is determined by assessing a farmers needs and ability to pay back.
Unfortunately, the then Branch Manager credited the entire ‘credit-limit’ amount into the savings accounts as a ‘loan’ to the Club members. This meant that the clock had begun ticking, and these 19 members were being charged an interest on their CREDIT LIMIT!
The Club members were alert and realised what happened and imediately wrote to the Branch Manager, requesting a clarification. We also sent copies of the letter to NABARD and the Regional Branch of Central Bank of India.
In the meantime, the Branch Manager got transferred out of our village, and we received a reply from the Regional office saying this would be looked into.
The new Branch Manager, Mr. Amrik Singh Deol was appraised of the situation and he promised to remedy it immediately. And he kept his word.
Central Bank of India Branch Manager - Chodan Branch. He wasted no time in regularising all the KCC accounts.
At our last meeting, all those who had applied for the KCCs, were given fresh passbooks (as they should have been given at the very start). He’s also sanctioned KCCs for several more members.
A round of applause for Mr. Deol and the Central Bank of India’s Chodan Branch!!
Sometime in March 2009, 19 members of the Club applied for and got Kissan Credit Cards (KCCs). The KCC is a NABARD scheme aimed at providing timely credit to farmers.
Chorao Farmers Club receive Kisan Credit Cards
What is the KCC?
The KCC is like a regular credit card given by various banks where the holder has a credit limit up to which she/he can spend, without needing to carry cash with them. Like regular credit cards, the farmer pays interest ONLY on the the amount withdrawn and not the entire credit-limit amount. This credit facility is set up as a revolving cash credit facility that allows farmers unlimited withdrawals and repayments.
The difference here is that unlike a regular credit cards that are used in stores/restaurants etc… the KCC is used only with the bank that issues the KCC, to withdraw money that is used to meet the production credit need, cultivation expenses, and contingency expenses of the farmers. Farmers can withdraw cash up to the credit limit available.
Who is eligible?
Most farmers with proof of land holding are eligible for a Kisan Credit Card (KCC).
What if I am a tenant and I do not have a and land to my name?
NABARD has a scheme by the name Joint Liability Group (JLG) scheme that is mean precisely for landless farmers.
A JLG is an assembly of 5-10 member clients (new or existing) informally recognised by the bank as a group. The main aim of this scheme is to offer bank funds to small and marginal farmers and village artisans who have no land or assets to provide as collateral.
Thus farmers without any land to their name can also get credit through the JLG scheme.
This page on the NABARD website has more information on JLGs.
What papers are needed for apply for a KCC?
We approached the branch manager of the bank we are linked to. He asked all farmers to provide the following documents:
- Bank Savings Account details
- 1 Photograph
- Photocopy of Ration Card
- Photocopy of Election Card
- Copy of Form 1 and 14
- Details of a Guarantor
One guarantor is needed. Members agreed to stand as guarantors for one another.
On a predetermined day, the club members met with necessary papers. They filled out forms and helped each other with specific issues they might have. These forms weher then collectively submitted to the bank, which batch-processed them and gave 19 members the KCCs.
This page on the NABARD website provides more information on the KCC scheme.
Approach your local bank to fully understand the features and details about the scheme.
