Santa Claus comes around just once a year. In the meantime, there are Credit Cards.
The strength of India, even after 75 years of independence, lies in its villages. India's agricultural sector is the backbone of its economy and is the single largest contributor to the GDP of India. Realizing the importance of catering to the financial needs of farmers and agriculturists, NABARD came up with the concept of the Kisan Credit Card which was then introduced by all major Indian Banks.
Indian Bank RuPay Kisan Credit Card aims to provide the necessary financial assistance to farmers for expenses related to agriculture and allied activities. This credit card guarantees the availability of credit at any time and enhances the farmer's repayment flexibility. Through the Indian Bank RuPay Kisan Credit Card, insurance coverage is also offered to extend financial support for farmers in the event of crop failures and natural calamities.
Indian Bank RuPay Kisan Credit Card is a boon for farmers who are in need of instant credit. Here are some of the features and benefits that accompany the Indian Bank RuPay Kisan Credit Card.
Indian Bank RuPay Kisan Credit Card aims to meet the short-term credit requirements of farmers regarding post-harvest expenses, cultivation of crops, consumption requirements of farmer households, loans for marketing of produce. The credit card can also be used to get instant investment credit requirements for agriculture and other allied activities like sprayers, pump sets and dairy animals. Also, this credit card will enable farmers to get working capital for the maintenance of farm assets and agriculture & allied activities like inland fisheries and dairy animals.
The assessment of crop loan amount is based on the scale of finance for crop + insurance premium amount x Extent of area cultivated + 10% of limit towards post harvest/household/consumption requirements + 20% of limit towards maintenance of farm equipment and assets.
Marginal farmers can get instant credit, thanks to the simple assessment procedure and Flexi KCC process.
As the margin comes in-built into finance scale, no separate margin is required for crop loans.
For a limit of up to Rs.3 lakh, no processing fee is charged for loans availed using Indian Bank RuPay Kisan Credit Card.
The interest rate for the Indian Bank RuPay Kisan Credit Card loan scheme is made affordable by the interest subvention scheme of the Government of India and also incentives are offered for prompt repayment as per State Government and Government of India norms.
The Kisan Loan is disbursed through different channels including technology-driven channels like mobile handsets, ATMs and Point of Sale.
Only a simple documentation process is carried out at the time of the first availment and after that, just a simple declaration about the crops proposed or raised is required by the farmer.
For farmers holding the Indian Bank RuPay Kisan Credit Card, a Kisan Credit Card (KCC) cum Savings Bank (SB) account is provided instead of two different accounts which offers more flexibility and ease of maintenance. Also, the credit balance in this KCC cum SB account will fetch interest savings at the prescribed bank rate which will be beneficial to the cardholder.
The KCC is valid for 5 years after which it can be renewed subject to the discretion of the bank.
Each purchase/withdrawal under the short-term loan sub-limit is allowed to be liquidated in a period of 12 months without the requirement to bring the debit balance in the account to zero at any given point in time. No withdrawal from the account can remain unpaid or outstanding for a period of more than 12 months.
The interest rates for loans availed using Indian Bank RuPay Kisan Credit Card are given below.
| Amount in Lakh | Interest Rate |
|---|---|
| Up to Rs.3 lakh | 7% |
| Loan amount greater than Rs.3 lakh | As prescribed by the bank |
Some important points to be noted about rate of interest for Indian Bank RuPay Kisan Credit Card are as follows.
An applicant must satisfy the following criteria to be eligible to apply for an Indian Bank RuPay Kisan Credit Card.
The following documents will be required to apply for Indian Bank RuPay Kisan Credit Card.
Other documents might be asked for depending on the applicant's profile. Keep documents like PAN card, voter ID and Aadhaar card ready to speed up the Indian Bank RuPay KCC application process.
Indian Bank RuPay Kisan Credit Card is valid for a period of 5 years from the date of issuance after which it can be renewed at the bank.
The maximum repayment tenure is 12 months for all loans obtained through Indian Bank RuPay Kisan Credit Card.
The crop loan quantum is assessed by a variety of factors like the area of cultivation, crop type, post-harvest limit, maintenance charges towards farm assets, equipment, etc.
No, you do not have to pay a processing fee for loan requirements of up to Rs.3 lakh.
To apply for the Indian Bank RuPay Kisan Credit Card, you need an application form, address proof, and identity proof.
Each withdrawal under the short-term sub-limit can be liquidated within 12 months without having to bring the account's debit balance to zero. There should be no outstanding withdrawals in the account for more than 12 months. The term loan component will be repayable based on the type of activity/investment, in accordance with the existing investment credit rules.
The purpose of the Indian Bank Kisan Credit Card is to cover the short-term financial needs for crop cultivation and post-harvest expenses. It also helps farmers obtain working capital to maintain farm assets and offers financial assistance if any consumption is required in a farmer’s household.
The interest rate for short-term crop loans of up to Rs.3 lakh is 7%.
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