State Bank of India offers the Kisan Credit Card scheme to farmers to provide them with the required credit for crop production, emergency expenses, allied agricultural activities, etc. The loan is disbursed to farmers using a simple sanction process with easy documentation. The Kisan Gold Card scheme is also offered to address the production needs, meet domestic commitments inclusive of medical expenses, children’s education and marriage, etc. Domestic requirements will be included to up to 20% of the credit limit.
SBI YONO mobile app, which is a combined platform for lifestyle and banking service, will soon be available for farmers and businessmen, announced the 2nd largest card issuer in India.
With the eye-catchy tag line, ‘You Only Need One’, the app has been reportedly popular among youngsters. Since its launch in 2017, about 61 lakh users have been registered and it currently witnesses about 3 lakh logins on daily basis.
The new services in the YONO app for farmers, businessmen and frequent travelers will be launched in April in 6 vernacular languages, said SBI Chairman, Rajnish Kumar.
For farmers, the ‘YONO Farmer’ service will provide agriculture-related services such as the information related to seeds, climate or weather information, Kisan Credit Card facility, gold loans and online market information.
Businessmen would see all their needs and requirements under one card or services and for NRIs and globetrotters the structure is being mapped, added the Chairman.
Kisan Credit Card – KCC:
State Bank of India will determine the short term credit limit for the first year based on the crops grown according to the quantum of finance and cropping pattern projected. The credit limit would also cover household expenses, farm and farm asset maintenance costs, crop insurance, asset insurance, personal accident insurance and post-harvest requirements. State Bank of India will revise the limit every year and there will be an increase by 10%. The Kisan Credit Card limit will also include any amount required for investments done on the farm like purchasing implements or equipment for crop production and the borrower has to repay this amount within one year. This investment portion will not have an annual review, but will be considered when the withdrawal limit is being set by the bank. The Maximum Permissible Limit (MPL) sanctioned on the Kisan Credit Card will be the short term loan limit derived for the fifth year inclusive of the investment loan amount. The Maximum Drawal Limit (MDL) sanctioned on the Kisan Credit Card will be the short term loan limit derived for the first year or a sum of the limit from the second to the fifth year including the investment loan amount. The credit under the Kisan Credit Card will be in the form of revolving credit and the balance in an account will get the holder interest as per Savings bank rates.
Kisan Credit Card customers will receive a Debit Card/ATM card - State Bank Kisan Card, for making withdrawals from their KCC accounts at PoS and ATM machines.
State Bank of India will waive the processing fees for loans taken for an amount up to Rs. 3 lakhs.
Security does not have to be given for credit limits up to Rs. 1 lakh and for limits up to Rs. 3 lakhs, if there is a tie-up arrangement made for recovering the loan.
Every Kisan credit card account has to be renewed every year before the due date to get the assigned credit limit. This renewal has to be done for the entire period of five years. The customer has to give a revival letter or a declaration to State Bank of India before the expiry date. When the renewal happens, the revision of the Maximum Drawal limit will be assessed according to the projected cropping pattern and the area confirmed by the borrower.
State Bank of India will also provide crop insurance for all eligible crops as per the National Agricultural Insurance Scheme.
The loan will be disbursed by SBI as cash, according to the cultivation needs of the crop grown.
Borrowers making repayments have to ensure that the amount is directed into their Kisan Credit Card accounts. The amount that has to repaid should be the minimum loan amount with interest and other applicable charges, before the due date.
Farmers wishing to apply for the Kisan Credit Card can easily do so by visiting the nearest SBI rural branch or contact the marketing officer visiting the concerned village.
The loan given through the Kisan Gold Card can be used for buying farm assets, constructing assets, purchasing land, building farm houses or for purchasing tractors and other accessories.
The loan amount that is sanctioned by State Bank of India is five times the yearly farm income or 50% of the mortgaged land value, which has been submitted as collateral security. Depending on whichever is lesser, the maximum amount sanctioned will be Rs. 10 lakhs. While mortgaging the land, borrowers have to submit documents like encumbrance certificates, land records, etc.
For loan amounts taken for up to Rs. 1 lakh, hypothecation of the assets that have been created is required. For loan amounts taken above Rs. 1 lakh, hypothecation of the assets, land mortgage, charge on land or any other reliable security is required.
Borrowers can do repayments as yearly, quarterly or half-yearly installments, based on the crop harvest or other agricultural conditions within a period of six to seven years. Credit taken for establishing horticultural orchards can be repaid within nine years from the sanction date.
Farmers wishing to apply for the Kisan Gold Card can easily do so by visiting the nearest SBI rural branch or contact the marketing officer visiting the concerned village
A) Borrowers with total credit limits below Rs. 25 lakhs
Working Capital/ Loans
If the Government of India provides a 2% subsidy to SBI, the short term crop loans taken for an amount up to Rs. 3 lakhs will be charged a fixed interest rate of 7%.
Term Loans/ Investment Loans:
|Loan Amount||Tenure between 3 years and 5 years||Tenure above 5 years|
|For up to Rs.3 lakhs||11.80%||12.05|
|Rs.3 lakhs to up to Rs. 5 lakhs||12.80%||13.05|
|Rs.5 lakhs to below Rs.25 lakhs||13.80%||14.05|
B) Borrowers with total credit limits between Rs. 25 lakhs and up to Rs. 100 crores
Working Capital/ Loans
|Rating||Tenures up to 3 years||Term Loans|
|Tenure between 3 years and 5 years||Tenure above 5 years|
|SB 1 / SB 2||11.55%||12.05%||12.30%|
|SB3 - SB 5||12.05%||12.55%||12.80%|
|SB6 / SB7||12.30%||12.80%||13.05%|
|SB8 / SB 9||12.80%||13.30%||13.55%|
|SB 11 - SB15||15.80%||16.30%||16.55%|
C) Interest Rates on Cash Credit/ Crop Loans / Production Loans / Term Loans:
|Amount||Cash Credit and Demand Loans||Term Loan and Demand Loan|
|To be repaid on demand||Tenures from one to three years||
Tenures from three to five years
Tenures of five years or above
|Credit limit up to Rs.50,000||11.40 %||12.30%||12.80%||13.05%|
|Credit limit above Rs.50,000 to up to Rs.2 lakhs||12.30%||13.30%||13.80%||14.05%|
|Credit limit above Rs.2 lakhs to up to Rs.3 lakhs||13.05%||14.05%||14.55%||14.80%|
|Credit limit above Rs.3 lakhs to up to Rs.5 lakhs||14.05%|
|Credit limit above Rs.5 lakhs to up to Rs.25 lakhs||15.05%||15.05%||15.55%||15.80%|
|Credit Limit above Rs.25 lakhs as per the Credit Risk Assessment||13.80% - 16.05 %||13.80% - 16.05 %||14.30 % - 16.55%||14.55 % - 16.80%|
If the Government of India provides a 2% subsidy to SBI, the crop loans and production loans taken for an amount up to Rs. 3 lakhs will be charged a fixed interest rate of 7%.
Kisan Credit Card:
Farmers can apply for the Kisan Credit Card scheme as a single applicant or as joint applicants with co-borrowers who are owner cultivators. Other type applicants eligible for this scheme are share croppers, oral lessees, tenant farmers, SHGs and Joint Liability Groups of farmers.
Kisan Gold Card:
Farmers who have had impeccable repayment patterns for the past two years, reliable borrowers from other banks, new applicant farmers holding deposits for atleast two years with SBI and old customers who have closed their accounts with SBI can apply for the Kisan Credit Card.
Yes, State Bank of India has 428 Specialized Agricultural Development Branches along with 18 Agri Commercial Branches to offer credit facilities to farmers for crop production.
Yes, along with the Kisan credit card, SBI also offers personal accident insurance, asset insurance and crop insurance.
The crop insurance will cover all types of eligible crops cultivated by the farmer.
Yes, customers can easily check the status of their Kisan credit card applications on the SBI website.