Santa Claus comes around just once a year. In the meantime, there are Credit Cards.
The Kisan Power scheme from Axis Bank which features the Kisan Credit Card offers timely financial solutions to farmers for cultivation of crops and allied agricultural activities. The Kisan Credit Card aims to offer adequate credit facilities for farmers to purchase agricultural equipment, carts, bullock, develop land, buy two or three or four wheelers, repair farm machinery or address any domestic need like education of children, sickness, family commitments, functions, etc. Using the Axis Bank Kisan Credit Card, farmers can either take a term loan or a cash credit with flexible repayment options and tenures.
The loan has to be repaid after the harvesting of the crop is done, with sufficient time given to market and sell the produce. For cash credit, the tenure given by Axis Bank is up to a period of one year and for term loans, the tenure available is seven years.
The following can apply for Axis Bank Kisan credit card:
Interest Rate of Kisan Credit Card: 9.90% to 13.65%
The rate of interest for Kisan credit card is as follows:
| Particulars | Amount | ||
|---|---|---|---|
| Facility type | Minimum interest rate | Maximum interest rate | Mean interest rate |
| Investment credit | 8.85% | 14.10% | 13.30% |
| Production credit | 8.85% | 13.10% | 12.70% |
| Term Loan | Cash Credit | |
|---|---|---|
| Processing Fees | Up to 1% of the loan amount with taxes | Up to 1.5% of the loan amount with taxes |
| Legal / Technical Charges | Up to Rs. 5000 | Up to Rs. 5000 |
| Stamp Duty / Other Document charges | As per state laws | As per state laws |
| Cheque Bounce | Rs. 500 / instance with service tax | Rs. 500 / instance with service tax |
| Issuance of cheque books | No charge for first 100 leaves. Rs. 2 / leaf thereafter | No charge for first 100 leaves. Rs. 2 / leaf thereafter |
| Prepayment penalty | Nil | Nil |
| Penal Interest | For Defaults - 6% per annum | For Defaults - 6% per annum |
| NOC/ No-dues certificate | Nil | Nil |
| Incidental/ Collection/ Legal / Repossession charges borne by the bank | As per the actual amount | As per the actual amount |
| Charges for filing ROC | If filed before 30 days - Rs.1200/ filing plus service tax. If filed after 30 days extra penalty will be charged. | If filed before 30 days - Rs.1200/ filing plus service tax. If filed after 30 days extra penalty will be charged. |
| Non-submission of Stock Statement | Nil | Nil |
| Non-submission of Stock or property insurance | An additional interest rate of 6% will be levied on the outstanding amount. | An additional interest rate of 6% will be levied on the outstanding amount. |
The following documents are required to apply for Kisan credit card:
Follow the steps mentioned below to apply for the Kisan credit card online:
Step 1: Visit the official axis bank website
Step 2: Check the option for Kisan credit card
Step 3: Click on ‘Apply’ button
Step 4: Fill in the form with the required details
Step 5: Click on Submit
Once the application is submitted, check the reference number generated by the system and note it for future use.
You can visit the nearest Axis Bank branch and apply for this credit card. To do so you will have to ask for the Kisan credit card application form and submit it with the required details and documents.
Agri Business Loans:
Yes, borrowers can also select the option of registering for e-statements and get them delivered to their email addresses.
Yes, Axis Bank does provide the option to bank on their mobiles to maintain their loan accounts.
The Axis Bank Kisan credit card is valid for a period of five years.
Farmers can avail themselves of a loan up to Rs.3 lakh using the Kisan credit card.
The Kisan credit card limit varies from bank to bank. Other than that, for farmers, the limit is decided based on the type of crop they cultivate, estimated annual income, etc.
The farmers can use their Kisan credit card to buy fertilizers, pesticides, seeds, etc. They can also use this credit card to purchase machinery, for land development, etc.
Other than Axis Bank, KCC is provided by HDFC bank, Bank of Baroda, Central Bank of India, etc.
The minimum age required to avail Kisan credit card is 18 years and the maximum age allowed to avail the credit card is 75 years.
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