Central Bank of India Kisan Credit Card

Through its Kisan Credit Card Scheme, Central Bank of India attempts to help the farmers by providing them with money on credit. This credit can be used by the farmers for agricultural or domestic purposes such as –

• For post - harvest expenses and for produce marketing
• For the consumption needs of the farmers
• For Working Capital for the maintenance of farm equipment, assets and allied agricultural activities such as fishery, dairy, etc.
• Short – term credit need for cultivation of crops

Features and Benefits of Central Bank of India Kisan Credit Card Scheme:

The features and benefits of Central Bank of India Kisan Credit Card Scheme are as follows –

• Margin
  • There is no margin on Central Bank of India Kisan Credit Card as it is built in the finance scale.
• Facility
  • The Kisan Credit Card offers Short – term revolving credit facility.
• Primary Security
  • Farmers have to provide the assets and crops that they create using the loan as primary security.
• Collateral
  • If farmers borrow up to Rs.1 Lakh, they do not have to provide a collateral. If they borrow more than Rs.1 Lakh, they have to provide a collateral.
• No Documentation and Processing Charges
  • The bank does not charge any documentation or processing charges on Kisan Credit Card.
• Repayment
  • The repayment period is based on the projected marketing and harvesting of the crop. The loan limit is valid for a period of 5 years (subject to annual review).
• Credit Limit

  The credit limit for Central Bank of India Kisan Credit Card is fixed as follows:

  • For the first year

    The credit limit is based on the finance scale of the crop added to

    • 10 percent of the limit for post-harvest expenses and
    • 20 percent of the limit for maintenance and repairs and
    • Asset Insurance, Personal Accident Insurance and Crop Insurance
  • For the second and the subsequent years

    The credit limit is fixed by adding 10 percent for cost escalation with the limit for the first year.

Central Bank of India Kisan Credit Card Eligibility Criteria:

All the farmers, be it joint borrowers or individual farmers, who are tenants, owner cultivators, sharecroppers, oral lessees and Self Help Groups or JLG (Joint Liability Groups) of farmers are eligible to apply for Central Bank of India Kisan Credit Card.

Interest Rates on Central Bank of India Kisan Credit Card:

• The interest rate is Base Rate + 0.5 percent on Kisan Credit Card loans of up to Rs.50, 000
• The interest rate is Base Rate + 1 percent on Kisan Credit Card loans of more than Rs.50, 000 up to Rs.5 Lakhs
• The interest rate is Base Rate + 1.5 percent on Kisan Credit Card loans of more than Rs.5 Lakhs up to Rs.25 Lakhs
• The interest rate is Base Rate + 2 percent on Kisan Credit Card loans of more than Rs.25 Lakhs

Other Agricultural Products / Schemes offered by Central Bank of India:

Apart from this Credit Card, Central Bank of India provides the following agricultural products and schemes:

• Cent Vermicompost Scheme
• Cent Kisan Tatkal Scheme
• Cent Solar Light Scheme
• Cent Solar Pumpset
• Cent Solar Water Heater Scheme
• Cent Kisan Vehicle
• Cent Estate Purchase Scheme
• Cent Gold and Silver Loan Scheme
• Cent Agri – Farmhouse Scheme
• Cent Poly House, Green House, Shade Net House Scheme
• Cent Dairy Scheme
• Cent SHG bank Linkage Scheme
• Cent Agri Lang Purchase
• Cent Tractor Scheme
• Cent Kisan Sathi
• Cent Kisan Gold Card (CKGC)
• Agri Clinic and Agri Business Centre
• Cent Gramin Bhandaran Yojana
• Scheme for Financing JLGS
• Cent Warehouse Receipt Scheme

FAQs on Central Bank of India Kisan Credit Card

1. How to apply for the Central Bank of India Kisan Credit Card?

   To apply for the Central Bank of India Kisan Credit Card, a farmer has to download the application form from Central Bank of India website, fill it and submit it to the bank.

2. Who can the farmers contact when they need any help with regards to their Central Bank of India Kisan Credit Card?

   The farmers can contact the bank when they need any help with regards to their Central Bank of India Kisan Credit Card.

3. Can farmers use the loan they receive through Central Bank of India Kisan Credit Card to buy farm equipment?

   Yes, the farmers can use the loan they receive through Central Bank of India Kisan Credit Card to buy farm equipment.

4. If a farmer takes a loan of Rs.10 Lakhs through Central bank of India Kisan Credit Card, what will be his rate of interest?

   If a farmer takes a loan of Rs.10 Lakhs through Central Bank of India Kisan Credit Card, his rate of interest will be Base Rate plus 1.5 percent.