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Overview of Indian Bank RuPay Kisan Credit Card:

The strength of India, even after 68 years after independence, lies in its villages. India’s agricultural sector is the backbone of its economy and is the single largest contributor to GDP of India. Realizing the importance of catering to the financial needs of farmers and agriculturists, NABARD came up with the concept of 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 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.

Features and Benefits of Indian Bank RuPay Kisan Credit Card:

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 Indian Bank RuPay Kisan Credit Card.

• Multi-purpose 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, loan 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 maintenance of farm assets and agriculture & allied activities like inland fisheries and dairy animals.

• Crop Loan Quantum:

  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 equipments and assets.

• Simple Assessment Procedure:

  Marginal farmers can get instant credit, thanks to the simple assessment procedure and Flexi KCC process.

• No Margin Requirements:

  As the margin comes in-built in finance scale, no separate margin is required for crop loans.

• Processing Fee Waiver:

  For a limit of up to Rs. 3 lakhs, no processing fee is charged for loans availed using Indian Bank RuPay Kisan Credit Card.

• Affordable Interest Rates:

  The interest rate for Indian Bank RuPay Kisan Credit Card loan scheme is made affordable by interest subvention scheme of Government of India and also incentives are offered for prompt repayment as per State Government and Government of India norms.

• Disbursement Channels:

  The Kisan Loan is disbursed through different channels including technology driven channels like mobile handsets, ATM and Point of Sale.

• Simple Documentation Process:

  Only a simple documentation process is carried out at the time of first availment and after that, just a simple declaration about the crops proposed or raised is required by the farmer.

• Savings Bank Account:

  For farmers holding Indian Bank RuPay Kisan Credit Card, a Kisan Credit Card (KCC) cum Savings Bank (SB) account is provided instead of two different accounts that offers more flexibility and ease of maintenance. Also, the credit balance in this KCC cum SB account will fetch interest savings at prescribed bank rate which will be beneficial to the cardholder.

• KCC Validity:

  The KCC is valid for 5 years after which it can be renewed subject to the discretion of bank.

• Flexible Repayment Terms:

  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 of time. No withdrawal from the account can remain unpaid or outstanding for a period of more than 12 months.

Interest Rates for Indian Bank RuPay Kisan Credit Card Loan:

The interest rates for loans availed using Indian Bank RuPay Kisan Credit Card are given below.

Some important points to be noted about rate of interest for Indian Bank RuPay Kisan Credit Card are as follows.

• The rate of interest for Indian Bank RuPay Kisan Credit Card is linked to the base rate. The rate of interest is fixed accordingly in case any Government supported interest subvention is offered for any component of limit.
• Currently, the rate of interest for short term crop loans and KCC sanctioned loans for farmers up to Rs. 3 lakhs is set a 7% according to extant interest subvention scheme of Indian Government.
• The long term loan limit under Indian Bank RuPay Kisan Credit Card depends on base rate.

Eligibility for Indian Bank RuPay Kisan Credit Card:

An applicant must satisfy the following criteria to be eligible to apply for an Indian Bank RuPay Kisan Credit Card.

• All farmers who are individuals or joint borrowers who are owner cultivators are eligible to apply for Indian Bank RuPay Kisan Credit Card.
• Oral lessees, tenant farmers and share croppers can apply for Indian Bank RuPay Kisan Credit Card,
• Joint liability groups and self-help groups of farmers and agriculturists including those of tenant farmers and share croppers can get this credit card.
• The applicant must be an Indian Resident and over 18 years of age.

Documentation Required for Indian Bank RuPay Kisan Credit Card:

The following documents will be required to apply for Indian Bank RuPay Kisan Credit Card.

• Duly filled application form and passport sized photographs
• Land documents
• KYC documents - address proof and identity proof
• Security PDCs

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.

FAQs for Indian Bank RuPay Kisan Credit Card:

1. What security is required for Indian Bank RuPay Kisan Credit Card loan?

   The security requirements are as follows.

   • For card limits up to Rs. 1 lakh as per RBI Extant guidelines, hypothecation of crops is prescribed as security.
   • For card limits up to Rs. 1 lakh, hypothecation of crops without the requirement of any collateral security and with tie-up for recovery is prescribed as security.
   • For loan limits exceeding Rs. 1 lakh in case of non-tie-up and Rs.3 lakhs in case of tie-up loan advances, collateral security through mortgage of immovable property is prescribed/
   • In regions and states where the bank has the facility for online creation of charge on land records, the same is done.
2. What is the maximum repayment tenure for loan obtained through Indian Bank RuPay Kisan Credit Card?

   The maximum repayment tenure is 12 months for all loans obtained through Indian Bank RuPay Kisan Credit Card.

3. What is the validity for Indian Bank RuPay Kisan Credit Card?

   Indian Bank RuPay Kisan Credit Card is valid for a period of 5 years from date of issuance after which it can be renewed at the bank.

4. For loans exceeding Rs. 3 lakhs, what will be the processing fee?

   The processing fee is waived off for loans up to Rs. 3 lakhs. For loans exceeding Rs. 3 lakhs, do enquire with Indian Bank about the processing fee as rates & charges are subject to change at frequent intervals.

5. How is the crop loan amount determined by Indian Bank?

   The crop loan quantum is assessed by a variety of factors like area of cultivation, crop type, post-harvest limit, maintenance charges towards farm assets and equipment’s etc.