Krishi VaartaLive Hindustan
SBI launches new facility: Kisan Credit Card limit increased!
The State Bank of India has provided a major relief to the farmers. Now any farmer who has a Kisan Credit Card (KCC) can increase or decrease his limit at home. The country's largest lender SBI has launched a new facility on Yono Agriculture called Kisan Credit Card Review or KCC Review Option.
Farmers will no longer have to travel to the bank branch to apply for amendment in their credit card limit. SBI has said that the option of reviewing KCC on Yono Agriculture will help farmers to apply in just four clicks from the comfort of their homes without any paperwork.
Interest is paid at the rate of the savings bank on the credit balance in the KCC account.
Free ATM cum Debit Card (State Bank Kisan Card) for all KCC borrowers
Interest rebate is available at the rate of 2% per annum for loan amount up to Rs. 3 lakh.
Additional interest rebates at the rate of 3% per annum if the loan is repaid early.
Notified crops / notified areas for all KCC loans are covered under crop insurance.
The quantum of loan for the first year will be determined on the basis of agricultural costs, post-harvest expenses and agricultural land maintenance costs.
The loan will be sanctioned on the basis of increase in the amount of finance during the subsequent 5 years.
Collateral security is not required for KCC limit up to Rs 1.60 lakh.
Simple interest will be charged at the rate of 7% per annum for one year or till the due date of repayment, whichever is earlier.
In case of non-repayment within the due dates, interest will have to be paid on the card rate.
The compound interest will be compounded half yearly after the due date.
The repayment period will be decided according to the estimated harvesting and marketing period of the crop for which the loan has been granted.
Documents required for KCC:
For ID proof: Voter ID card / PAN card / Passport / Aadhaar card / Driving license etc.
Address proof: Voter ID card / passport / Aadhaar card / driving license etc.
This is how you will get loan
The government has a complete record of the farmers' Aadhaar number, their account number and their land. On this basis, the bank will have to give KCC to apply. At the same time, the Reserve Bank has announced that the farmers credit card holders can use their credit card to pay their household expenses. The loan rate on Kisan Credit Card is 4 percent. Farmers can take loans up to Rs 1.60 lakh without security at this interest rate. The loan amount can be increased to Rs 3 lakh on timely payment.
Get your farmer credit card made like this
First you go to https://pmkisan.gov.in/. In this website, the option to download KCC Form is given on the right side of the Farmer Tab. Download the form from here and fill it after printing. After this fill the form in your nearest bank and submit it. Once the card is ready, the bank will inform you and send the card to your address.
Source: Live Hindustan, 25 September 2020,
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