What is KCC in banking?

The Pradhan Mantri Kisan Samman Nidhi Yojana is now connected to the PM Kisan Credit Cards. Farmers may apply for a 4% interest rate loan from KCC for up to Rs. 3 lakh. My father also applied for this scheme as we are in need of money for agricultural purposes. So keep reading to find out the KCC full form in banking.

What is KCC meaning in banking?

An initiative of the Indian government called Kisan Credit Card gives farmers quick credit availability. NABARD devised the Kisan Credit Card (KCC) system, which was introduced in 1998. (National Bank for Agriculture and Rural Development). It is to provide farmers with short-term formal financing.

The KCC plan was established to make sure that farmers in the agriculture, fishery, and animal breeding sectors could obtain the financing they needed. This was achieved by supporting them in obtaining quick loans and granting them a credit limit. It will help them to purchase items and pay for other costs. This tells you about what is KCC in banking.

What are the features of KCC?

• Flexible repayment alternatives and a simple payout process.

• A unique credit facility loan is available for all agricultural and related needs.

• It helps in getting cash discounts from sellers or dealers as well as help with the purchasing of fertiliser, plants, etc.

• No security is needed for loans up to Rs.1.60 lakh.

• Farmers are eligible for loans of up to Rs. 3 lakh as well as loans for agricultural sales.

• Insurance protection for KCC plan participants up to Rs. 50,000 in the event of death or severe disability.  A cover of Rs. 25,000 is provided for other hazards.

• Farmers who qualify will receive a smart card, a debit card, and savings account with a competitive interest rate.

What are the interest and other fees on Kisan Credit Cards?

The interest rate on the KCC varies between banks in addition to its loan amount. But from what I know, it is typically 4% and might be as cheap as 2%. The government also provides farmers with a number of incentives and programmes related to interest rates.

I hope you understood the KCC full form in banking.