Kisan credit card: eligibility, interest rate, loan amount and other features
State Bank Kisan Card
New Delhi: The State Bank of India (SBI), the country’s largest lender, offers farmers a Kisan Credit Card (KCC). Its objective is to provide timely and adequate credit to farmers so that they are able to meet their cultivation expenses. In addition to this, it helps them to cope with unforeseen expenses and expenses related to ancillary activities through a simplified procedure that facilitates the use of loans when needed.
Who is eligible for this loan-
According to the official SBI website-www.sbi.co.in, all farmers (individuals or co-borrowers) who are owner-cultivators, sharecroppers, oral tenants, sharecroppers etc., single farm group (SGH) or group of farmers , including sharecroppers, are eligible for the loan.
Rate of interest-
For the KCC loan, simple interest is payable at 7 percent per annum for one year or until the repayment due date, whichever occurs first. In the event of non-reimbursement on time, interest is applied at the rate of the card. However, in the event of non-payment beyond the due date, interest will be compounded semi-annually. However, the repayment period can be fixed according to the harvest and marketing period planned for the crops for which a loan has been granted.
Features and Benefits of Kisan Credit Card-
1. Farmers earn interest at the savings bank rate on the KCC credit balance.
2. Borrowers will receive a State Bank Kisan Card (ATM) debit card to enable them to withdraw KCC accounts from ATMs and Point of Sale (PoS) terminals.
3. The collateral guarantee of this loan is canceled for a limit of up to Rs 1 lakh and up to Rs 3 lakh for loans with a blocking agreement for collection.
4. Another important point to note here is that the processing fee is waived for the KCC limit of up to Rs 3 lakh.
5. In accordance with cultivation cultivation requirements, the loan is disbursed in cash.
6. The requirement of low value investment credit in the form of agricultural implements or equipment such as sprayer, plow, etc., and repayable within one year is included when fixing of the KCC limit.
7. Under this scheme, the loan amount for the first year is assessed on the basis of the cost of cultivation, post-harvest costs and farm maintenance costs and for the following five years, the loan will be sanctioned on the basis of an increase in the finance scale.
How to apply for a KCC loan-
Applicants can contact their nearest branches engaged in agricultural development or even speak to visiting marketers in the village. All they need to do is complete an application form accompanied by proof of identity and address.