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How is interest for Kisan Credit Card is calculated? Know its rules
Many farmers of the country are taking advantage of the PM Kisan Samman Nidhi Scheme of Modi Government. Kisan Credit Card is also provided to the beneficiaries of this scheme. Through this, loans are available to the farmers at low interest. With its help, farmers are able to repay their loan easily. Farmers will get more benefits if they take loans from kisan credit card instead of taking loans at high interest rates from banks. Calculating interest on loan
Let us tell you that the loan is available at the rate of 9 percent, but on this the government gives a subsidy of 2 percent. So, it becomes 7 percent, then if this loan is returned on time, then we will get another 3 percent discount. This means the farmer has to pay the interest at the rate of 4 percent. Explain that if the farmer takes a loan from another bank, then he has to pay 8 to 9 percent interest.
Card is valid for 5 years
The validity of Kisan Credit Card has been fixed by the government for 5 years. After this the card has to be renewed. For this, cardholders can apply to Co-operative Bank, Regional Rural Bank, State Bank of India, Bank of India and IDBI Bank, National Payments Corporation of India. Apart from this, farmers can contact the bank from where the credit card is made. Under this loan up to Rs 3 lakh is provided without guarantee. With this, a short term loan of up to Rs 3 lakh is given in 5 years. Its interest rate is 4 percent.
Many times the question will come in your mind: how is interest calculated on loans given under Kisan Credit Card? Let us give you complete information in this regard today. First of all, you have to know about the time limit of this loan, how much time period the loan is given under the Kisan Credit Card.
Source: krishi jagran, 29 june 2020
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