Bangiya Gramin Vikash Bank Kisan Credit Card Scheme Overview:
Bangiya Gramin Vikash Bank aims to provide credit to farmers through their Kisan Credit Card, which can be used for agriculture and allied activities. The procedure for availing this card is simple and it fulfils the short term credit and consumption requirements of the farmers, helping them repay their dues to non- institutional lenders.
Through one Kisan Credit Card, farmers can avail term loans and working capital or short term credit facilities. A passbook is provided to the cardholders which is divided into 3 different sections –
- Short Term Credit or Crop Loans
- Capital Credit for allied activities
- Term Credit (to be repaid beyond a period of 1 year)
Features and Benefits of Bangiya Gramin Vikash Bank Kisan Credit Card Scheme:
- Operation Area – The Bangiya Gramin Vikash Bank Kisan Credit Card operates in all semi urban and rural branches
- Credit Limit –
- The minimum credit limit is Rs.10, 000 and the maximum credit limit is Rs.3, 00, 000 in working capital form and Rs.10, 00, 000 in the term loan form. In special cases, where the applicant is deserving, the limit can be extended to more than Rs.10, 00, 000
- The working capital will work in the revolving cash credit form. Thus, the borrower can withdraw and repay the money numerous times in the account. This is applicable on consumption loans, ST crop loans and on the repayment of loans that are non- institutional. Term Loans are provided for purchasing machinery and plants, agricultural implements and for land development, which includes the construction of various types of storage facilities
- The limit and sub limit is fixed by taking into consideration the production credit requirement for the year. It includes the ancillary activities like marketing, storing, electrical expenses, etc.
- The bank fixes the credit limit for Kisan Credit Card on the basis of the cropping pattern, land under cultivation and the finance scale that is recommended by the State or District level technical committee. If there is no such recommendation, the branch of the bank can fix the suitable finance scale for the crop after acquiring permission for the same from the Regional Office
- Within the overall limit, the bank fixes season- wise sub limits
- The maximum amount one can use for contingency expenses is 10 percent of the ST loan, provided that this amount is under Rs.10, 000
- Validity – The Bangiya Gramin Vikash Bank Kisan Credit Card is valid for a period of 5 to 7 years and is subject to annual reviews.
- Primary Security – Hypothecation of the crop or dairy animal or farm machinery, etc.
- Additional Security – The additional security has to be provided if the loan limit exceeds Rs.1, 00, 000. As part of this security, the following has to be given –
- Collateral Security to be provided as per the RBI or the Bank’s guidelines (wherever applicable)
- Land mortgage by declaring in Form – I
- Registered or Equitable mortgage (wherever applicable)
- Margin – There is no margin for a loan limit amounting up to Rs.1, 00, 000
- Repayment – The working capital and crop loan or short term credit for agriculture and associated activities will be provided as a revolving cash credit, which has to be repaid within a period of 12 months. The term loan has to be repaid to the bank within a period of 5 to 7 years and is dependent on the nature of investment or activity
- Crop Insurance – The NAIS requires all crop loans availed under KCC to be insured, with the consent of the government. The SLBC of the state in question will then monitor and follow up on the details. Every farmer who grows the notified crops is eligible for insurance, regardless of him or her availing a loan or not. The Nodal Officers of each district will collect the premium for the insurance and also remit the same to the Agricultural Insurance Corporation of India. For marginal and small farmers, a subsidy is given on the premium
- Personal Insurance Coverage – It is mandatory for all Kisan Credit Card holders to be covered under the Personal Accident Insurance Scheme (PAIS). The premium is shared in 2:1 ratio by the Branch issuing the card and the card holder. The premium for one year policy is Rs.13 and for 3 year policy, it is Rs.39. A farmer can be maximum 70 years old on the starting date of the policy. PAIS provides Rs.50, 000 in case of Accident death, Permanent total disability and loss of two eyes or limbs.
Bangiya Gramin Vikash Bank Kisan Credit Card Eligibility Criteria:
- Farmers who are sharecroppers, owner cultivators or bargadars are eligible to apply for a Bangiya Gramin Vikash Bank Kisan Credit Card
- Individual borrowers can avail a Bangiya Gramin Vikash Bank Kisan Credit Card on merit basis. Corporate Body Society, club, association, group, etc. can not avail this card
- Individual farmers within Joint Liability Groups (JLGs) are eligible to apply for a Bangiya Gramin Vikash Bank Kisan Credit Card
- Blind and Illiterate people can avail this card after ensuring protective measures against its tampering and misuse
- Farmers are allowed to apply for term credits for agriculture and associated activities through their Bangiya Gramin Vikash Bank Kisan Credit Card
- If the applicant is an existing loan defaulter of Bangiya Gramin Vikash Bank or any other bank, then he or she will not be eligible to apply for the Kisan Credit Card.
Interest Rates on Bangiya Gramin Vikash Bank Kisan Credit Card
The interest rate is 7 percent per annum for short – term production loan of up to Rs.3, 00, 000 per person. The interest rate is 4 percent per annum (after applying the 3 percent interest subvention) for farmers who repay their credit within 12 months.
On credit balances, the interest is applied for SB Account, which is payable on the minimum balance in the revolving cash credit account, if there is any. This interest has to be paid between 10th and the last day of the month.
Applicants have to take a separate application form for each purpose along with the application form for Kisan Credit Card. The sub – limit for each purpose has to be assigned separately while setting the limit.
Documents Required for Bangiya Gramin Vikash Bank Kisan Credit Card:
- Loan Agreement
- D.P. note for the limit sanctioned
- Continuity Letter
- Hypothecation of the assets or the crops created using the loan money
- If loan amount is above Rs.1, 00, 000, then a third party guarantee or mortgage of land is needed
Other Agricultural Products / Schemes offered by Bangiya Gramin Vikash Bank:
- Swarojgar Credit Card
- General Credit Card
- Join Liability Group
- Krishak Jyoti
- Banga Sobujayon Prokolpo
- Gramin Bhandaran Yojana
- Banga UTSAV
- Bangiya Mahajan Mukti Yojana
- ASHA for SHGs
- Centrally Sponsored Schemes
- Working Capital Loan
Bangiya Gramin Vikash Bank Kisan Credit Card FAQs:
- Will farmers get a passbook along with their Bangiya Gramin Vikash Bank Kisan Credit Card?
Yes, farmers will get a passbook along with their Bangiya Gramin Vikash Bank Kisan Credit Card. This passbook will be divided into 3 sections and contain transaction details of the different loans facilities.
- From where can a farmer get more information about Bangiya Gramin Vikash Bank Kisan Credit Card?
Farmers can get more information about Bangiya Gramin Vikash Bank Kisan Credit Card from any branch of the bank.
- What should be the maximum age of a farmer for him or her to be eligible for the Personal Accident Insurance Scheme (PAIS)?
A farmer has to be maximum 70 years old in order to be eligible for the Personal Accident Insurance Scheme (PAIS).
- From where can farmers obtain the application form for Bangiya Gramin Vikash Bank Kisan Credit Card?
Farmers can obtain the application form for Bangiya Gramin Vikash Bank Kisan Credit Card from any branch of the bank.