Benefits, features and rate of interest on KCCHemlata Khandelwal / 2021-06-10 04:18:58
Kisan Credit Card is a scheme of the Government of India that aims to protect the farmers of the unorganized sector from the high-interest rates usually charged by lenders like moneylenders. The interest rate under this scheme can be as lower as 2.00%. Also, the repayment period is based on the crop or business period for which the loan amount was taken.
What are the Benefits and Features of Kisan credit card?
Benefits and Features of Kisan Credit Card are:
- The rate of interest can be as lower as 2.00%
- Loan up to Rs 1.60 lakh is provided without any security/security
- A crop insurance scheme is also provided to the farmers.
Insurance coverage is provided
- 50,000 on death and permanent disability
- Up to Rs 25,000 is provided against other risks
- The repayment tenure is based on harvest and business period for which loan amount was taken
- Loan amount up to Rs.3.00 lakh can be withdrawn by the cardholder
- No security is required for loans up to Rs 1.60 lakh
- Farmers get a higher interest rate on savings in their Kisan Credit Card account
- A simple interest rate is charged as long as the user makes prompt payment. Otherwise, the compound interest rate is applied.
What is the rate of interest on the Kisan credit card?
The rate of interest on Kisan credit card:
The interest rate on KCC varies from bank to bank. However, most of the banks offer interest sub-loans as per the schemes of the government, where the interest charged can be as low as 2.00%.
What is the eligibility for a Kisan credit card?
Kisan credit card eligibility:
Here are the eligibility conditions to apply for Kisan Credit Card:
- All farmers who are engaged in farming or farming-related work either alone or in association with more persons
- Persons who are owner-cum-agriculturists
- All tenants are farmers or oral lessees and sharecroppers in agricultural land
- Self Help Groups or Joint Liability Groups consisting of tenant farmers or sharecroppers
- 5,000 to the farmers. and above should be deserving for production loan, and then he/she will be entitled to Kisan Credit Card
- All farmers who are deserving of short-term loans for crop output or any apparent activities as well as for non-farm activities
- Farmers must be residents of the bank's area.
What are the documents required for a Kisan credit card?
Kisan Credit Card Required Documents
Applicants need to submit the following documents while applying for Kisan Credit Card (KCC):
- Identity Proof like Voter ID, PAN Card, Driving License, Passport, etc.
- Address Proof like PAN Card, Aadhar Card, Driving License Voter ID or any other Government approved ID
- Applicant photo
- Signed and filled application form
Applicants may note that the documents and other formalities may vary as per the internal guidelines of the Bank. The list above only includes some of the original documents.
PM Kisan Samman Nidhi
Post Budget 2020, the government has taken a major step towards making institutional loans more accessible to farmers. They are doing this by merging the Kisan Credit Card (KCC) scheme with the Kisan Samman Nidhi Yojana. The beneficiaries of Kisan Samman Nidhi Yojana will now be able to take advantage of the Kisan Credit Card, under which they can take a loan for agriculture at a concessional rate of only 4%.
How to apply for Kisan Credit Card under PM Kisan Samman Nidhi Yojana?
The following steps need to be followed to apply for Kisan Credit Card under this scheme:
- One page form to be filled which will be available on the website of all commercial banks and also published in all leading newspapers
- The applicant has to fill in the required information like land records and crop sown.
- Forms can be filled and submitted at the Common Service Center (CSC) and they are also responsible for transferring the filled form to the bank branches
- Banks have also been directed to motivate existing customers to take loans under the scheme.
To start a farm or any business you can take GST Registration online with Legalsalaah contact us to get the best solution for your further query.