Bangiya Kisan Credit Card

Features and Benefits of Bangiya Kisan Credit Card

The features and benefits of the Bangiya Kisan Credit Card are as follows:

1. Validity: The validity of the Bangiya Kisan Credit Card is 5 - 7 years; subject to annual review.
2. Credit Limit: For working capital, the minimum credit limit is Rs.10,000 while the maximum credit limit is Rs.3 lakh. The maximum credit limit in case of the term loan is Rs.10 lakh. However, in certain circumstances, the upper limit can be increased more than Rs.10 lakh, subject to conditions.
3. Security: For loans up to Rs.1 lakh, no additional security or margin is needed.
   1. Collateral security as applicable according to guidelines of RBI/Bank.
   2. Registered mortgage or Equitable mortgage wherever applicable.
   3. Land mortgage by a declaration in Form-I.
4. Repayment Period: The short-term credit/crop loans and the working capital come with a loan repayment period of 12 months. The term loan must be repaid within 5 to 7 years based on the type of activity or investment.
5. Interest Rates: The interest rates vary from time to time. At present, the interest rate is fixed at 7% for short-term production credit up to Rs.3 lakh per person. An interest rate of 4% is applicable to individuals who repay the loan amount within 12 months.
6. Insurance: Personal Accident Insurance Scheme (PAIS) is mandatory for all Bangiya Kisan Credit Card holders. Under this scheme, the premium payable is divided between the issuing bank and the cardholder in a 2:1 ratio. For a one-year policy, the premium amount is Rs.13. All crop loans will be insured by the National Agricultural Insurance Scheme (NAIS) with regard to the notified crops. Farmers, both loanee and non-loanee, who cultivate the above-mentioned crops in the notified regions will be eligible for insurance coverage. Cardholders will get coverage for accidental death, permanent total disability, and loss of two eyes/limbs.