Santa Claus comes around just once a year. In the meantime, there are Credit Cards.
The Kisan Credit Card (KCC) scheme was introduced by NABARD in 1998 to meet the production credit needs of farmers in a hassle-free and timely manner. This scheme was enforced by all major commercial banks, RRBs and cooperative banks in the institutional credit network. Hike in credit limit from second year till fifth year, simple documentation, direct disbursement channels and facilities for online land record access has made Kisan Credit Card scheme one of the popular agricultural credit schemes.
Kotak Bank has a range of unique financial products to cater to the financial needs of farmers and agriculturists, amongst which Kotak Kisan Card is an important product.
Kotak Kisan Credit Card offers an array of advantages for farmers who are agriculturists that will make them avail instant credit when required. Here are some of the features and benefits of Kotak Kisan Credit Card (KCC).
Multipurpose Card:
Kotak Kisan Credit Card can be used for the following needs and purposes.
The interest rates are nominal and will reduce the financial burden of farmers. Also, affordable interest rates will encourage farmers to choose Kisan Credit Card crop loans over the widely prevalent non-institutional credit sources.
Farmers will be offered a high loan quantum under KCC crop loans. The short term credit limit is fixed during the first year and is determined based on various factors like post-harvest, consumption & household expenses, scale of finance, crops being cultivated as per cropping pattern, asset insurance, crop insurance, personal accident insurance scheme and maintenance costs of farm assets. After that, for every consecutive year, the sanctioned limit will be increased by 10% till the 5th year.
All withdrawals and credit from the KCC account must be repaid within a period of one year. Also, Kisan Credit Card credit/loan will be a revolving account. Any credit balance in the account will fetch interest at the savings bank rate. These features will offer more financial flexibility to the cardholder.
For Kisan Credit Card loans up to Rs. 3 lakhs, the processing fee will be waived off.
Kotak Kisan Credit Card customers will be offered a passbook which will have details of cardholder’s name, credit limit and transaction information.
Kotak Kisan Credit cardholders will also be able to apply for personal accident insurance scheme at nominal premium rates.
An applicant must satisfy the following eligibility criteria to be able to apply for Kotak Kisan Credit Card.
The following can apply for Kotak Bank Kisan credit card:
Do enquire with Kotak Bank for a detailed eligibility list for your profile type and income criteria, if applicable.
The following documents must be submitted to complete the application process for Kotak Kisan Credit Card.
Based on loan sanction condition, other relevant documents might be required. Do enquire with Kotak Mahindra Bank about the list of documents required for Kisan Credit Card (KCC) scheme.
The fees and charges of Kotak Bank Kisan credit card is as follows:
| Fees/ charges types | Amount charged |
|---|---|
| Processing fee | Up to 2% of the sanctioned limit |
| Term loan foreclosure charges | 3% on outstanding balance |
| Documentation charges | Rs.5000 |
| Rate of interest | Minimum: Current MCLRÂ Maximum: 24% |
| Collection charges | 30.00% of additional interest |
| Swap charges | Rs.1000 |
| Fees to furnish credit rating report copy | Rs.1000 |
| Loan cancellation charges | Rs.2500 per agreement |
| Collateral part release | Rs.3000 per property |
| Minimum limit utilisation charges | Rs.10,000 |
| Minimum churning charges | Rs.10000 |
| Stock statement submission delay | Rs.5000 per month |
Follow the steps mentioned below to apply for the Kisan credit card online:
Step 1: Visit the official Kotak bank website
Step 2: Check the option for Kisan credit card
Step 3: Click on ‘Apply’ button
Step 4: Fill in the form with the required details
Step 5: Click on Submit
Once the application is submitted, check the reference number generated by the system and note it for future use.
You can visit the nearest Kotak Bank branch and apply for this credit card. To do so you will have to ask for the Kisan credit card application form and submit it with the required details and documents.
The interest rates for Kotak Kisan Credit Card loans varies from 7% per annum to 14% per annum depending on the cardholder’s operation land holding, cropping pattern and a variety of other factors. The interest rates for Kotak Kisan Credit Card loans are decided by the approving authority. Do enquire with the nearest Kotak bank branch or get in touch with the customer service cell to know the prevailing average interest rate for Kotak Kisan Credit Card loans.
You can use the credit offered by Kotak Kisan Credit Card for agriculture and other related activities like purchase of sprayers, dairy animals and pump sets.
Yes, you can use your Kotak Kisan Credit Card to meet the working capital requirements and post-harvest expenses.
Yes, all Kotak Kisan Credit Card Customers are also eligible for a personal accident insurance scheme offered by the bank.
Kotak Kisan Credit Card loans are offered for other activities including construction of warehouse, dealers of Agri inputs, fisheries, poultry, cold storage, dairy farming and horticulture activities.
You will get a passbook along with Kotak Kisan Credit Card and hence, you do not have to apply for it separately.
The Kotak Bank Kisan credit card is valid for a period of five years.
Farmers can avail themselves of a loan up to Rs.3 lakh using the Kisan credit card.
Yes, Kotak Bank does provide the option to bank on their mobiles to maintain their loan accounts.
The minimum age required to avail Kisan credit card is 18 years and the maximum age allowed to avail the credit card is 75 years.
Other than Kotak Bank, KCC is provided by Axis bank, HDFC bank, Bank of Baroda, Central Bank of India, etc.
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