Dena Bank offers the Dena Bank Kisan Gold Credit Card to farmers as a part of its “Whole Farm Approach” and provides loans to them. These term loans can be used by the farmers to finance their investment credit options such as bullock carts, milch animals, well-digging, installing electric motor, laying pipelines, sprinkler or drip irrigation system, and purchase farm machinery or also to finance their day-to-day domestic needs like medical needs, children’s education, and other miscellaneous expenses.
The loan margin applicable under this scheme is 15%. This is applicable at a uniform rate.
Mode of Disbursement:
Upon the borrower’s request, the term loan amount will be transferred to the Savings Account of the borrower in Dena Bank. The borrower can then withdraw the required sum of money by withdrawing it as cash or issuing the amount as cheques to the supplier.
The borrower can utilize up to 10% of the credit limit or a maximum of Rs. 50,000 without having to submit a quotation or bill. But, if the disbursement amount is more than Rs. 50,000, then the borrower has to submit receipts, bills or quotes to validate the process.
Identity Card cum Passbook:
The Dena Bank Kisan Gold Credit Card holder will receive an Identity Card cum Passbook that will have the borrower’s photograph.
This scheme has a validity period of 3 years and will be subject to annual reviews by Dena Bank.
The borrower has to place a primary security with the Bank in the form of hypothecation of assets that have been procured using the finance provided by the Bank.
The borrower has to pledge a collateral security to Dena Bank in the form of a simple charge or mortgage on the agricultural land owned by them. This has to be done through the Sub-Registrar’s office. Other collateral security that is accepted by the Bank is assets of corresponding value such as KVP, NSC, LIC policies or Term Deposit Receipt.
The maximum repayment tenure offered to a borrower by Dena bank on the term loan against Dena Bank Kisan Gold Credit Card is 7 years. If the loan has been taken to purchase farm equipment or tractors, the maximum repayment tenure will be 9 years.
All farmers who have an existing relationship with the bank and other loan accounts for at least 3 years with the Bank, can apply for a Dena Bank Kisan Gold Credit Card, regardless of their land holdings.
Yes, borrowers who fall under the SC/ST categories are exempt from processing fee as well as supervision charges.
No, a guarantor is not required in order to be eligible for the Dena Bank Kisan Gold Credit Card.
Yes, penalty charges are applicable as per the Bank’s guidelines, on all defaulted payments towards the Dena Bank Kisan Gold Credit Card.