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SBI Kisan Credit Card: Process To Apply And It’s Benefits


State Bank of India has pursued the government's directives to offer low-interest loans and stable tenure to farmers. SBI Kisan credit card was therefore introduced to support the farmers with a loan. RBI had requested financial firms to include a 3-month moratorium on EMIs for loans and credit cards to assist those who experienced income loss or interrupted cash flow throughout COVID-19 lockdown. Thus the moratorium has been extended till 31st August 2020 and you will not have to make any payment against your SBI Kisan Credit Card during this time window. However, a predefined interest rate will be applied.


Benefits of SBI Kisan Credit Card

The numerous benefits of SBI Kisan Credit Card are:

  • KCC holders can earn interest on the credit balance against the credit balance in KCC account.
  • Interest subvention of 2% p.a is accessible for farmers for loan amount up to Rs. 3 Lacs. And also interest subvention on prompt repayments up to 3.00% per annum.
  • Declared crops / reported areas for all KCC loans are protected under crop insurance
  • The first-year loan quantum would be assessed based on agricultural costs, post-harvest costs and farm maintenance expenses
  • The amount of the loan will be determined after the first year on the basis of an increase in the financial scale
SBI Kisan Credit Card: Process To Apply And It’s Benefits
  • Collateral security is waived-off for loans up to Rs. 1.60 lakh
  • At 7.00 per cent p.a., SBI Kisan credit card currently charges simple interest. For one year or the effective date of the reimbursement, whichever is earlier
  • Interest will be applied at the card rate, in case reimbursement is not rendered during the due date. Interest will be compounded half-yearly beyond the due date.
  • The repayment term will be fixed based on the harvesting and marketing cycle of the planted crops utilizing the loan amount

Eligibility and Documents Required

Eligibility criteria for SBI Kisan Credit Card are:

  • For this credit card, any farmer, whether they are individuals, joint farmers, oral tenants are eligible to apply
  • Joint liability groups, Self Help Groups and even tenant farmers are also eligible


Following documents are required to apply for SBI Kisan Credit Card

  • Proof of Identity: Aadhaar Card, Voter's ID Card, PAN, Driving Licence, government-approved photo ID etc.
  • Proof of address: Aadhaar Card, Utility bills (of the last 3 months), or any government certified address proof
SBI Kisan Credit Card: Process To Apply And It’s Benefits

How to apply?

You need to submit the application physically in order to apply for an SBI Kisan credit card. The application form can be downloaded from the official site of SBI. Fill up the application form with all the mandated details and submit it at your nearest SBI branch. The loan amount will be granted once your submitted application form is reviewed by the loan officer. Cardholders can start utilizing the loan amount once they get their Kisan SBI credit card.

Read more about: kisan credit card
Story first published: Sunday, August 16, 2020, 7:00 [IST]
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