Who’s eligible, how and the place to use, rate of interest, credit score restrict and different KCC particulars

By anshuli ist (printed)


‘Kisan Credit score Card’ is a scheme launched by the Authorities of India to fulfill the monetary wants of small and marginal farmers. Here is what you’ll want to know in regards to the plan:

Kisan Credit score Card (KCC) scheme helps farmers to purchase agricultural services and products on credit score at any time. Not too long ago, the federal government launched the Curiosity Subvention Scheme (ISS) to make sure that farmers pay the minimal price of curiosity to the financial institution whereas making use of for this bank card.

Now renamed as Revised Curiosity Subvention Scheme (MISS), the scheme will present an curiosity subvention of 1.5 per cent each year on short-term agricultural loans as much as Rs 3 lakh.

Listed here are vital issues to know in regards to the Kisan Credit score Card (KCC) scheme:

What’s the goal of KCC scheme?

In keeping with the RBI assertion, the target of the Kisan Credit score Card scheme is to offer enough and well timed credit score help to the farmers for his or her farming and different wants from the banking system beneath a single window with a versatile and easy course of.

Who can apply for this?

Farmers – Particular person / joint debtors who’re proprietor farmers, tenant farmers, oral lessees and sharecroppers; Self Assist Group (SHG) or Joint Legal responsibility Group (JLG) of farmers together with tenant farmers, sharecroppers and so on. can apply for KCC.

The minimal age of the borrower needs to be 18 years and most 75 years. In case of senior residents, it’s obligatory to have a co-borrower who’s the authorized inheritor.

Which banks provide KCC?

What are the rate of interest and different expenses on KCC?

The rate of interest on KCC varies from financial institution to financial institution together with its credit score restrict. Different charges and expenses reminiscent of processing payment, insurance coverage premium and so on. are decided on the discretion of the issuing financial institution.

Banks Providing Kisan Credit score Card Price of curiosity
SBI Kisan Credit score Card the minimal. 7% each year
pnb kisan bank card the minimal. 7% each year
hdfc financial institution kisan bank card the minimal. 9% p.a.
Axis Financial institution Kisan Credit score Card 8.85% p.a. | Curiosity Subvention Offered
Mahabank Kisan Credit score Card the minimal. 7% each year
Indian Abroad Financial institution Kisan Credit score Card 7% each year | Curiosity Subvention Offered
UCO Financial institution Kisan Credit score Card 7% each year | Curiosity Subvention Offered

(Supply: Paisabazaar)

What’s the reimbursement interval?

For the crops for which the mortgage has been given, the reimbursement interval could also be fastened by the banks as per the anticipated harvesting and advertising and marketing interval.

Typically, the mortgage element may be repaid inside a interval of 5 years relying on the kind of exercise/funding as per the extant pointers relevant for funding loans, as per RBI norms.

Financing banks might, at their discretion, provide longer reimbursement durations for time period loans relying on the kind of funding.

Is any insurance coverage supplied with KCC?

Eligible crops may be lined beneath ‘Pradhan Mantri Fasal Bima Yojana’ on premium cost. Debtors ought to go for private accident insurance coverage and medical insurance (the place relevant).

What are the paperwork required to use for KCC?

ID Proof like Driving License / Aadhar Card / Voter ID Card, Passport and so on. is required. Additionally, proof of land, crop sample (crop grown), safety paperwork for mortgage restrict, passport measurement images need to be submitted, duly attested by income officers.

How are you going to apply for KCC on-line and offline?

Those that want to apply for KCC card can apply on-line on the web site of any financial institution that gives this facility. There needs to be a ‘Kisan Credit score Card’ part beneath ‘Playing cards’. Candidates have to fill and submit PM Kisan Credit score Card On-line Software Type with required particulars.

Those that want to apply it offline can obtain the appliance kind, go to the closest financial institution department providing the ‘Kisan Credit score Card’ scheme and submit the stuffed kind.

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