Kisan Credit Card (KCC) :kisan credit card apply online
Kisan Credit Card (KCC) :kisan credit card apply online
The Kisan credit card (KCC) was created to protect Indian farmers from the excessive interest rates charged by unorganised money lenders. Farmers can get a loan whenever they need it. Customers that make timely payments are charged a lesser rate of interest, which is dynamic. The credit card's other data are listed below.
Kisan Credit Card Loan Goals and its Features
The primary goal of Kisan Credit Card Loan is to provide low-interest loans to farmers. Farmers previously relied on money lenders who charged high interest rates and were strict about the due date. Farmers had numerous difficulties as a result of this, particularly while they were planting crops.
Farmers can get a loan whenever they need it. Customers that make timely payments are charged a lesser rate of interest, which is dynamic. The credit card's other data are listed below.
Kisan Credit Card Loan Goals and Features
The primary goal of Kisan Credit Card Loan is to provide low-interest loans to farmers. Farmers previously relied on money lenders who charged high interest rates and were strict about the due date. This caused a lot of problems for farmers, especially when they were hit by natural disasters like hailstorms and droughts.
Kisan credit card loans, on the other hand, have a lower interest rate and a more flexible payback plan. Crop insurance and collateral-free insurance are also available to users. The following are the details of the Kisan Credit Card Loan scheme:
Features and Benefits of Kisan Credit Card
- The loan's interest rate could be as low as 2.00 percent.
On loans of up to Rs. 1.60 lakh, banks would not request security.
Users are provided with crop insurance coverage against a number of disasters.
The farmer is given with insurance coverage against permanent incapacity, death, and other dangers.
The repayment time is determined by the harvesting and marketing of the crop.
The cardholder can take out a maximum loan of Rs. 3.00 lakh.
Farmers who put money in the kisan Credit Card account will earn a high interest rate.
When farmers pay on time, they are charged a basic interest rate.
When cardholders fail to make timely payments, compound interest is assessed.
Eligibility Criteria for Kisan Credit Card Loan Scheme
Anyone involved in agriculture, associated activities, or other non-farming activity is eligible for a Kisan credit card loan. The following are the detailed eligibility requirements for a Kisan Credit Card loan:
18 years old is the minimum age.
75 years old is the maximum age.
If the borrower is a senior citizen (over 60 years old), a co-borrower is required, and the co-borrower must be a legal heir.
Individual/joint cultivators, owners, and all farmers
Tenant farmers, oral lessees, and sharecroppers are just a few examples.
Tenant farmers are included in SHGs, or joint liability groups.
Application for a Kisan Credit Card
Visit your preferred bank to apply for a Kisan credit card. Download the KCC online application if your bank allows it.
Complete the loan application and submit it to the loan officer.
If the loan amount exceeds Rs. 1.60 lakh, the loan officer will set the Kisan credit card lending limit after considering all criteria and may request collateral.
The farmer will receive their Kisan credit card after processing.
Usage of a Kisan Credit Card Loan
Customers can use their credit card to make cash withdrawals or straight purchases as soon as they receive it. Some banks also provide chequebooks.
The customer must ensure that the money is repaid quickly. This ensures that only simple interest, not compound interest, is charged on the loan. The farmer will have to pay less if simple interest is used, as opposed to compound interest, which will result in a higher payoff.
Institutions that provide the Kisan Credit Card Loan
Kisan Credit Card plans are available from top banks as well as several local banks. The following are a few of them.
Many people prefer to obtain a Kisan Credit Card from State Bank of India. This is because the interest rate on SBI Kisan Credit Card loans up to Rs. 3.00 lakh starts at 2.00 percent per annum.
The application process for the Punjab National Bank – PNB Kisan Credit Card is simple, and farmers should expect their applications to be processed quickly.
HDFC Bank is one of India's most well-known private banks. Their loans have an interest rate of roughly 9.00 percent and a credit limit of Rs. 3.00 lakh. A cheque book with a credit limit of Rs. 25,000 is also available to cardholders. The advantages don't end there; if a farmer's harvest fails, he or she may be eligible for a loan extension of up to four years. Crops planted with the loan fund are also protected from natural disasters and pest assaults.
Axis Bank is an Indian bank. The interest rate for Kisan Credit Cards loans is 8.85 percent. The bank, on the other hand, offers loans at lower interest rates in accordance with government subsidy programmes.
You can use your Kisan Credit Card to apply for the loan immediately at the bank location.
What is the rate of interest for a Kisan Credit Card loan?
The Bank sets the interest rate, which is determined by a number of factors including the farmer's credit history, the area under cultivation, and the crop under cultivation. The RBI, on the other hand, maintains an eye on the bank's maximum interest rate.
Is insurance included with the Kisan Credit Card loan for farmers?
Farmers get personal accident and asset insurance on Kisan credit card loans, and the National Crop Insurance Scheme protects the crops qualified for KCC.
What regions can the Kisan credit card be used for?