Santa Claus comes around just once a year. In the meantime, there are Credit Cards.
Bank of Baroda offers the Kisan credit card with a line of credit to farmers, providing them with timely financial support. The Kisan credit card offers complete solutions for all types of credit requirements with simple documentation procedures and flexible repayment options. The finance offered through the Baroda Kisan credit card scheme can be used to buy agricultural equipment to facilitate crop production, maintain farms, as a farm produce marketing loan, for allied agricultural activities, as a personal loan or as loans for redemption of loans from other lenders, other consumption requirements, and as investment credit for non-land and land based agricultural activities.
Loan Quantum:
Bank of Baroda will determine the loan quantum based on the average farm income, security value and the repaying capability of the farmer.
Line of Credit:
Bank of Baroda approves a line of credit for farmers based on the scale of finance requirement. This is set as the Baroda Kisan Credit Card limit for a period of five years. Every year, borrowers can procure loans depending on the scale of finance, without furnishing any new documents. While availing a loan, the borrower has to ensure that the loan amount falls within the pre-determined line of credit.
Baroda Kisan Credit Card issue:
Once the borrower has submitted the required documents and the Credit Card limit has been approved, the Baroda Kisan Credit Card will be given to the farmer. A passbook and a cheque book will also be given along with the card. The Baroda Kisan Credit Card will be a Baroda Kisan RuPay Card, which can be used at any ATM across the country for making cash withdrawals.
Other Benefits:
Repayment:
The line of credit taken will in the form of revolving cash credit and an annual review will be done by the bank for a period of five years. The investment credit tenure is determined as per the income got by the farmer, on a quarterly, half-yearly or yearly basis.
Rewards:
If a borrower has an impeccable repayment pattern, uses the BKCC scheme efficiently, improves the production in his farm along with the income, Bank of Baroda offers various concessions to these Baroda Kisan Credit Card holders additionally.
The bank would evaluate the consumption credit requirement for the farmer’s family for one year and increase the amount up to a maximum of Rs. 50,000.
The interest rates applied would be lowered for investment loans and production loans within a range of 0.25% to up to 0.50%. This will completely depend on the borrower and the repayments done.
Loan Margin:
Security:
For short term loans and crop loans taken for an amount up to Rs. 1 lakh, the hypothecation of the crops and the D.P Note is required. For short term loans and crop loans taken for an amount above Rs. 1 lakh, the hypothecation of the crops, land mortgage, third party guarantee and the D.P Note is required.
Investments loans taken where moveable assets are formed, the hypothecation of the assets to be bought and the D.P Note up to Rs. 1 lakhs or economic unit cost, whichever is lower is required. Investment loans taken under this category for over Rs. 1 lakh, require security in the form of hypothecation of the crops, land mortgage, third party guarantee and the D.P Note.
Investments loans taken where moveable assets are not formed, the land mortgage is needed for limits over Rs. 10,000.
Kisan Credit Cards By Top Banks
Bank of India Kisan Credit Card
Indian Bank Rupay Kisan Credit Card
Union Bank of India Kisan Credit Card
The Baroda Kisan Tatkal Loan Scheme is offered as immediate credit to meet emergencies with respect to agriculture or domestic requirements. The agricultural needs might be during off-season to buy equipment, bullock, packing material, onion sheds, pump sets, storage structures, irrigation pipes, and also for family commitments like medical expenses, festivals, religious ceremonies and other expenses.
Loan Tenure:
The term loan taken under the Baroda Kisan Tatkal Loan scheme can be repaid within three to five years.
Loan Quantum:
The maximum loan amount that can be availed by farmers is up to Rs. 50,000 or up to 50% of the existing Baroda Kisan Credit Card limit, whichever is lower.
Repayment:
The term loan can be repaid as half-yearly or yearly installments, based on the income generated by the farmer.
Loan Margin:
For term loans taken up to a credit limit of Rs. 1 lakh, there is no loan margin requirement. If a term loan is taken for purchasing heavy agricultural equipment and tractors for an amount above Rs. 10 lakhs, the loan margin required is 10%. If a term loan is taken for an amount above Rs. 10 lakhs to serve other purposes, the loan margin required is 15%.
Small and marginal farmers and agricultural workers have to pay a loan margin of 5% if no special subsidy is available. If a special development program subsidy is given, then there is no loan margin requirement.
Security:
For short term loans and crop loans taken for an amount up to Rs. 1 lakh, the hypothecation of the crops and the D.P Note is required. For short term loans and crop loans taken for an amount above Rs. 1 lakh, the hypothecation of the crops, land mortgage, third party guarantee and the D.P Note is required.
Investments loans taken where moveable assets are formed, the hypothecation of the assets to be bought and the D.P Note up to Rs. 1 lakhs or economic unit cost, whichever is lower is required. Investment loans taken under this category for over Rs. 1 lakh, require security in the form of hypothecation of the crops, land mortgage, third party guarantee and the D.P Note.
Investments loans taken where moveable assets are not formed, the land mortgage is needed for limits over Rs. 10,000.
Baroda Kisan Credit Card
Farmers who have good repayment patterns will qualify for credit limit sanctions for a value of Rs. 1000 or above. This limit is applicable for new applicants and also for non-banking customers. Farmers who are literate or illiterate are eligible to apply for the Baroda Kisan credit card provided they are land owners, permanent tenants, cultivators, lease holders and share croppers who have cultivated crops for not less than five years.
Baroda Kisan Tatkal Loan Scheme:
Existing Baroda Kisan Credit Card holders/farmers can apply for the Baroda Kisan Tatkal Loan as a single applicant or as joint applicants. The farmer should hold a very good repayment record for the last three years.
| Investment Credit/ Production Credit | Interest Rates |
|---|---|
| Amounts up to Rs. 3 lakhs |
Fixed interest rate of 7% per annum (Or) Base Rate = 9.65%. |
|
Amounts over Rs. 3 lakhs and below Rs. 25 lakhs |
Base Rate + 1.25% = 10.9% |
| Rs. 25 lakhs or above | Base Rate + 2.00% = 11.65% |
| For JLGs/ SHGs | Loan up to Rs. 3 lakhs - As per rates in the agri priority sector |
| Loans for Godown construction for storing produce | 9.65% + 0.50% = 10.15% |
| Loans against warehouse receipts to up to Rs 50.00 lakhs | 9.65% + 1.00% = 10.65% |
| Loans against ware house receipts to non-farmers | 9.65% + 2.00% = 11.65% |
| Loans for buying four wheelers | Baroda car loan interest rate minus 0.25%, the minimum being the base rate. |
|
Farm house construction + dwelling units for farmers |
As per Bank of Baroda home loan interest rates. |
| Loans for construction of cold storages for storing agricultural produce | 9.65% + 2.00% = 11.65% |
| Loans for poultry | 9.65% + 1.00% = 10.65% |
Bank of Baroda sanction term loans within thirty working days, depending on the type of application and approvals received.
Customers can contact any Bank of Baroda branch and get in touch with the branch manager to get advice on availing advances.
The validity period of a Baroda Kisan credit card is up to five years.
Interest rates for agricultural advances and loans are decided based on the current base rate of Bank of Baroda.
Yes, production and short term/term loan applicants can easily check the status of their Baroda Kisan credit card applications on the bank’s website.
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