Benefits of the Canara Bank Kisan Credit Card

• Financial Inclusion for Farmers: The Canara Bank KCC plays a crucial role in promoting financial inclusion by providing farmers, including small and marginal ones, with access to formal credit. Before the introduction of the KCC scheme, many farmers relied on moneylenders who charged exorbitant interest rates, often leading to a cycle of debt. The KCC offers a reliable alternative, enabling farmers to access credit through a trusted public sector bank. This benefit is particularly significant for tenant farmers, sharecroppers, and those without significant assets, as the scheme’s relaxed collateral requirements make it accessible to a wide range of applicants.
• Affordable Interest Rates: One of the primary benefits of the Canara Bank KCC is its low-cost credit. With an interest rate of 7% per annum for short-term loans up to Rs. 3 lakh, and an additional 3% interest subvention for prompt repayment, the effective interest rate can be as low as 4%. This affordability reduces the financial burden on farmers, allowing them to invest in high-quality inputs like seeds, fertilizers, and pesticides without worrying about high borrowing costs. Compared to informal credit sources, which can charge interest rates as high as 24-36% per annum, the KCC offers significant cost savings.

How to Apply for the Canara Bank Kisan Credit Card (KCC)

• Online Application via Canara Bank Website:
  • Visit Canara Bank’s official website and navigate to the ‘Loans’ or ‘Agriculture’ section.
  • Find the “Kisan Credit Card” option or use the search function to access the KCC application page.
  • Select the KCC scheme and click on “Apply Now” to begin the online process.
  • Fill in your personal details, landholding information, cropping pattern, and credit needs accurately.
  • Upload scanned copies of identity, address, and landholding documents (ensure clarity and legibility).
  • Submit the form and note the reference number for tracking your application.
• Offline Application via Branch Visit:
  • Visit the nearest Canara Bank branch within your area.
  • Request the Kisan Credit Card application form from the loan officer.
  • Fill out the form with accurate information, including land and crop details.
  • Attach self-attested copies of the required documents (originals may be needed for verification).
  • Submit the form and meet with the loan officer for further processing.
• Application Review and Sanction Process:
  • The bank verifies landholding, cropping pattern, and financial needs.
  • Field verification may be conducted if necessary.
  • Loan is sanctioned based on eligibility, with or without collateral depending on the loan amount.
  • A RuPay debit card linked to the KCC account is issued upon approval.
• Tracking Application Status:
  • Track using the application reference number via the online portal or by contacting the branch.
  • Alternatively, call Canara Bank customer service: 8885545255.
• Eligibility Criteria:
  • Age: Minimum 18 years old.
  • Occupation: Farmers involved in crop cultivation, allied activities, or agro-based ventures.
  • Land Ownership: Must own, lease, or cultivate agricultural land.
  • Repayment History: Should not be a defaulter with any financial institution.
• Documents Required:
  • Identity Proof: Aadhaar Card, PAN Card, Voter ID, Driving License, Passport.
  • Address Proof: Aadhaar, utility bill, ration card, rental agreement.
  • Landholding Proof: Pattadar passbook, lease agreement, or land revenue receipts.
  • Photographs: 2 recent passport-size photos.
  • Others: Income declaration (if applicable), previous loan repayment track (if any).
• Additional Considerations:
  • Loan amounts above ₹1.6 lakh may require collateral security.
  • Crops financed under KCC are covered by crop insurance.
  • PAIS (Personal Accident Insurance Scheme) is available at low premiums (₹15–₹45).
  • Annual credit limits may increase by 10% to accommodate inflation and rising costs.
  • KCC can be used for crop production, post-harvest needs, consumption, allied/non-farm activities, and investment credit.
• Card Activation and Access:
  • RuPay debit card issued with the KCC account can be used at ATMs, POS, and Business Correspondents.
  • Enables secure, cashless access to funds across India.

Eligibility Criteria for Canara Bank Kisan Credit Card

• Age Requirements:
  • Minimum Age: Applicant must be at least 18 years old at the time of application.
  • Maximum Age: Up to 75 years. If above 60, a co-borrower (legal heir or immediate family member) is required.
• Occupation and Activity:
  • Primary Engagement: Must be engaged in agriculture or allied activities such as crop cultivation, dairy farming, fisheries, poultry, or sericulture.
  • Eligible Categories: Includes individual farmers, tenant farmers, sharecroppers, oral lessees, SHGs, JLGs, and registered fishermen.
• Credit History:
  • Applicants must not be defaulters with any bank or financial institution.
  • A clean repayment history improves approval chances.
• Specific Requirements for Allied Activities:
  • Dairy Farming: Must own or lease cattle sheds. Verification may be conducted by the bank.
  • Fisheries: Requires ownership or lease documents for ponds, water bodies, or fishing boats.
  • Other Allied Activities: Poultry, piggery, and sericulture must be supported with activity-specific documents (like equipment purchase bills).
• Loan Limits and Security:
  • Up to ₹1.6 lakh: No collateral required; hypothecation of crops/assets suffices.
  • Above ₹1.6 lakh: Additional security such as land mortgage may be required. Margin ranges from 15%–25% for allied activities.
• Residency and Jurisdiction:
  • Applicants are encouraged to apply at the Canara Bank branch serving their agricultural location.
  • Proof of local residency (Aadhaar, voter ID) strengthens the application.
• Minimum Credit Requirement:
  • Applicants must demonstrate a minimum credit need of ₹5,000 for genuine agricultural expenses.
• Documentation:
  • Landholding Proof: Valid and certified documents showing ownership or lease status.
  • Activity Proof: For allied sectors, relevant ownership/operation documents are required.
  • KYC Compliance: Aadhaar, PAN, and address proof are mandatory.
• Cropping Pattern and Land Details:
  • Applicants must provide information about land area and type of crops cultivated.
  • This helps determine the Scale of Finance (SOF) and eligible credit amount.
• Group Eligibility:
  • SHGs and JLGs: Groups of farmers or landless cultivators can apply collectively for better credit access.
• Activity Verification:
  • Canara Bank may conduct field visits to verify on-ground agricultural or allied operations.
• Co-Borrower Requirement (for Senior Applicants):
  • Applicants aged above 60 years must apply jointly with a co-borrower.
  • The co-borrower should be a legal heir or immediate family member with repayment capability.
• Purpose of Loan Usage:
  • The credit must be used strictly for agriculture-related activities such as crop production, farm maintenance, purchase of inputs, or allied operations.
  • Misuse of funds for non-agricultural purposes may lead to loan cancellation or recovery action.
• Bank Account Requirement:
  • The applicant must have an active savings account with Canara Bank for credit disbursal and repayments.