The Kisan Credit Card is an effective scheme to help farmers meet their short-term production needs as well as long-term investment requirements. Credit is granted to farmers to help them through the agricultural process or crop production, harvest and produce marketing. It comprises of different components that can be used for various purposes. The loans are also granted for allied activities and household consumption.
Under this scheme, farmers can avail of adequate and timely credit to meet farming expenses. The Kisan Credit Card Scheme gives farmers more financial freedom and flexibility.
Purpose of the loan:
Finance is granted under the Naini Kisan Card Scheme for farmers to meet investment and production requirements. The loan comprises of different components to meet crop production needs as well as post-harvest expenses. Other components include allied activities and household expenses.
The credit granted under the Kisan Credit Card Schemes can be repaid in 5 years generally.
Low Interest Rates:
Interest rates are low and subsidies are offered to farmers who maintain their repayment schedule well. The interest rates charged depend on the quantum of the loan and the base rate. The current base rate is 9.75%.
|Loan Amount||Components||Interest Rate|
|Up to Rs. 3 lakhs||0.50% above BR||10.25 %|
|Above Rs. 3 lakhs||1.50% above BR||11.25 %|
Subsidized interest rates are available to farmers under the Naini Kisan Card Schemes. The State or Central Government will grant interest subventions from time to time to help the agricultural sector.
The loan quantum sanctioned to farmers will depend on the size of land holdings plus the scale of finance. The specifications will be prescribed by DLTC of respective Lead District Office.
Nainital Bank Kisan Credit Card:
This scheme is provided to ensure hassle-free and adequate finance to farmers to meet their production and investment needs. This Scheme is called NKCC scheme. Eligible loan amount depends on the scale of finance and land holdings.
Nainital Bank Kisan Gold Card:
This scheme known as NBKGC is provided to extend financial aid to farmers to meet Production and Investment requirements. The Kisan Gold Card is an innovative product from Nainital Bank to help the entire agricultural community. The credit is granted in the form of revolving cash credit and term loan facility. The loan can be used for agricultural and allied activities.
For loans taken to meet short-term credit needs for crop cultivation and post-harvest expenses, an interest subvention of 2% p.a. is available. This is valid for a period of one year and for loans up to Rs. 3 lakhs per farmer. The interest subvention is given provided the bank makes the credit available at ground level at 7% p.a.
Under the Naini Kisan Credit Card Scheme, eligible farmers need to have one a separate account under the Short Term Crop Loans. The interest subvention is applicable only on the eligible amount of Rs. 3 lakhs out of the total credit limit as per the scale of finance which is prescribed by the DLTC.
Under the Naini Bank Kisan Gold Scheme, the maximum interest subvention is granted as per scale of finance under the NKCC scheme. Interest subvention will be applicable only on the amount that qualifies on the NKCC scheme. A separate account needs to be opened under the Short Term Crop Loans to avail of this interest subvention. The account should be opened for at least 1 year at the rate of interest of 7% per annum not exceeding Rs. 3 lakhs. The total credit of both accounts should not exceed the eligible limit. If the loan under subvention is not repaid on or before the due date, then normal interest rate will be applicable.
Nainital Bank is also involved in other agricultural products and schemes. It also has an interest in financial inclusion.
There is no maximum limit prescribed under the Naini Kisan Credit Card (NKCC) scheme. The loan quantum depends on the scale of finance and the land holdings as prescribed by the DLTC of the concerned Lead District Offices.
The loan quantum depends on the scale of finance and the land holdings as prescribed by the DLTC of the concerned Lead District Offices. Under the Naini Kisan Gold Credit Card Scheme, a maximum of Rs. 50 lakh can be sanctioned for the purpose of production and investment needs.
The interest rate depends on the base rate as well as the loan amount. For loans up to Rs. 3 lakhs, the maximum interest charged is the base rate + 0.50% per annum. This is currently at 10.25%. For loans above Rs 3 lakhs, the interest charged is base rate + 1.50% per annum. This is currently 11.25% per annum.