The New Kisan Credit Card is offered to farmers to address their credit and investment needs for agriculture and allied activities. Borrowers can buy farm equipment, develop land and buy carts, bullocks, etc., using the credit facility offered under this scheme. The credit given is in the form of revolving cash credits for agricultural allied activities and cultivation of crops. The IOB New Kisan Credit Card comes with a validity period of five years.
The loan amount or limit is decided based on the scale of finance, cropping pattern and cultivation requirements of the farmer.
The loan margin that has to be brought in for credit up to Rs. 1 lakh is zero and for loans above Rs. 1 lakh, the loan margin required is 15% to 25%.
For loans taken for an amount up to Rs. 1 lakh, hypothecation of crops and assets got through the loan is required. For loan amounts higher than Rs. 1 lakh, third party guarantee, hypothecation of crops or assets, as required by Indian Overseas Bank.
Indian Overseas Bank also provides a holiday period for borrowers, depending on the asset got through the loan.
The term loan that is availed by farmers has to be repaid using tenures falling within five years to Indian Overseas Bank.
The Interest rates for the term loan offered to farmers would be applicable as per prevailing rates. Customers can contact the nearest Indian Overseas Bank branch for more details.
The Agri General Purpose Credit Card is offered to meet any financial requirement of a farmer with regards to agriculture, allied activities and family consumption needs. This credit is issued based on the cash flow available with the farmer. The loan is given in the form of cash credit and a card, passbook or a cheque book is not given to borrowers. Withdrawals can be made using loose cheque leaves by customers.
The maximum loan amount sanctioned to farmers is up to Rs.25, 000 by Indian Overseas Bank.
Applicants do not have to bring in any loan margin amount, when they procure an Agri General Purpose Credit Card.
Applicants do not have to submit any type of security collateral, when they procure credit through an Agri General Purpose Credit Card.
Indian Overseas Bank does not offer a holiday period for borrowers availing credit using this card.
The cash credit that is given to farmers is reviewed on a periodic basis by Indian Overseas Bank.
The interest rates for the credit offered to farmers would be as per Indian Overseas Bank’s Prime Lending Rates.
Indian Overseas Bank's Base Rate = 9.90% per annum
Bank’s Prime Lending Rate (BPLR) = 15.50%
Short Term Agricultural loans - New Kisan Credit Card
|Loan Amount up to Rs. 50,000||Nil|
|Loan Amount over Rs. 50,000 to up to Rs. 3 lakhs||0.13%|
|Loan Amount above Rs. 3 lakhs||Rs. 178 for every lakh|
New Kisan Credit Card:
Agri General Purpose Credit Card:
Agricultural Short term loans:
Agricultural Term Loans:
IOB Special Credit Schemes:
Yes, the approved credit amount has to be availed within a year from the sanction date.
The validity period for a New Kisan credit card is five years.
Interest rates for term loans are given based on the base rate of Indian Overseas Bank.
Term loan applicants / farmers can easily check the status of their New Kisan credit card applications on IOB’s website.
No, there is no physical card given, loans are only given in the form of cash credits to farmers..
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