Santa Claus comes around just once a year. In the meantime, there are Credit Cards.
  • Bangiya Kisan Credit Card

    Bangiya Gramin Vikash Bank has introduced the Bangiya Kisan Credit Card to provide financial assistance to farmers for agricultural activities. This credit card offers short term credit/crop loans, term credit, and capital credit for agriculture and related activities.

    Features and Benefits of Bangiya Kisan Credit Card

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

    • Validity: The validity of the Bangiya Kisan Credit Card is 5 – 7 years; subject to annual review.
    • 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.
    • Security: For loans up to Rs.1 lakh, no additional security or margin is needed.
      • Primary security: Hypothecation of assets such as dairy animals, crops, farm machinery, etc.
      • Additional security:
        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.
    • 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.
    • 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.
    • 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.

    Eligibility Criteria for Bangiya Kisan Credit Card

    Farmers should satisfy the following conditions to apply for a Bangiya Kisan Credit Card:

    • Individuals and Joint Liability Group (JLG) can apply for this card.
    • Farmers who are bargadars, sharecroppers, and cultivators can avail of short-term crop loans.
    • Blind and illiterate individuals can get the Bangiya Kisan Credit Card if they take the necessary safeguard measures to prevent their cards from being misused.
    • Individuals involved in agriculture, poultry, pisciculture, dairy, horticulture, etc., can apply for this credit card.

    Documents Required for Bangiya Kisan Credit Card

    The following documents are required for a Bangiya Kisan Credit Card:

    • Agreement of the loan
    • Demand Promissory (D.P.) note for the approved limit
    • Letter of continuity
    • Hypothecation of crops or assets
    • Mortgage of land or third-party guarantee if the loan amount exceeds Rs.1 lakh

    FAQs on Bangiya Kisan Credit Card

    1. What is the validity of the Bangiya Kisan Credit Card?

      The validity of the Bangiya Kisan Credit Card is 5 – 7 years depending on the annual review.

    2. Can a JLG apply for the Bangiya Kisan Credit Card?

      Yes, JLGs can apply for the Bangiya Kisan Credit Card.

    3. What is the coverage offered by PAIS?

      In the event of death, permanent complete disability, or loss of two limbs/two eyes, Rs.50,000 will be offered.

    4. What is the interest rate offered by the Bangiya Kisan Credit Card?

      The interest rate is 7% for short term production credit up to Rs.3 lakh per person. However, for farmers who repay the loan amount within 12 months, an interest rate of 4% will be offered.

    5. What is the maximum credit limit for working capital?

      The minimum and maximum credit limits for working capital are Rs.10,000 and Rs.3 lakh, respectively.

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