The KCC scheme additionally offers the power of ATM enabled RuPay Card. (Representative picture)
The KCC scheme additionally offers the power of ATM enabled RuPay Card, one-time documentation, built-in value escalation within the restrict and any variety of drawals throughout the restrict.
The Kisan Credit Card scheme goals at offering ample and well timed credit score assist from the banking system underneath a single window with versatile and simplified procedures to the farmers for his or her cultivation and different wants.
The KCC scheme was launched in 1998 for the difficulty of Kisan Credit Cards to farmers on the premise of their holdings for uniform adoption by the banks in order that farmers might use them to readily buy agriculture inputs corresponding to seeds, fertilizers, pesticides and so forth. and draw money for his or her manufacturing wants.
The scheme was additional prolonged for the funding credit score requirement of farmers viz. allied and non-farm actions within the 12 months 2004.
In 2020 ,Prime Minister Narendra Modi launched the revised scheme to Kisan Credit Card (KCC).
KCC covers post-harvest bills, produce advertising mortgage, consumption necessities of farmer households, working capital for upkeep of farm property and actions allied to agriculture, funding credit score requirement for agriculture and allied actions.
Objectives of Kisan Credit Card scheme
- To meet the quick time period credit score necessities for cultivation of crops;
- Post-harvest bills;
- Produce advertising mortgage;
- Consumption necessities of farmer family;
- Working capital for upkeep of farm property and actions allied to agriculture;
- Investment credit score requirement for agriculture and allied actions.
The KCC scheme additionally offers the power of ATM enabled RuPay Card, one-time documentation, built-in value escalation within the restrict and any variety of drawals throughout the restrict
RuPay is an Indian home card scheme conceived and launched by the National Payments Corporation of India.
As per data accessible on the State Bank of India’s web site, options of Kisan Credit Card are;
- Type of Facility: Revolving money credit score account. Credit steadiness within the account, if any, will fetch curiosity at Savings financial institution charge.
- Quantum of Loan: Need Based finance contemplating cropping sample, acreage and Scale of Finance (SOF).
- Margin: Nil
- Moratorium: Not Available
- Repayment: The compensation interval as per the crop interval (Short/ Long) and advertising interval for the crop.
- Security:
Primary: Hypothecation of Crops grown / property to be created out of Bank finance.
Collateral: Equitable mortgage / registered mortgage of land / immovable property as relevant of the worth of 100 % mortgage. However, collateral is waived for KCC restrict as much as Rs. 1.60 lakhand as much as Rs.3.00 lakhs, in case of tie up association. - Interest Subvention: 3% p.a. curiosity subvention for immediate debtors as much as Rs. 3.00 lakhs.
- Other:
Tenure: 5 years, with 10% annual enhance of restrict yearly, topic to annual evaluation. - Rupay debit playing cards for all eligible KCC debtors.
- Insurance:
a. Eligible crops could also be coated underneath Pradhan Mantri Fasal Bima Yojna (PMFBY) on premium cost.
b. Borrowers must also go for Personal Accident Insurance, Health Insurance (wherever relevant).
Eligibility
- All farmers-individuals/Joint debtors who’re proprietor cultivators.
- Tenant farmers, Oral lessees and Sharecroppers, and so forth,.
- SHGs or Joint Liability Groups of farmers together with tenant farmers, sharecroppers, and so forth,.
Interest, Fees and Charges :
Up to Rs 3.00 lakhs– 7% each year as per extant curiosity subvention scheme of presidency of India. For curiosity subvention, submission of Aadhar particulars to the Bank is obligatory (wherever relevant).
An curiosity subvention of three% each year shall be offered to such of these farmers repaying in time, i.e., from the date of disbursement of the mortgage/s upto the precise date of compensation or upto the due date fastened by the banks for compensation of such mortgage/s, whichever is earlier, topic to a most interval of 1 12 months from the date of disbursement.
This additionally implies that the farmers repaying promptly as above would get quick time period crop loans and/or quick time period loans for allied actions together with animal husbandry, dairy, fisheries, bee maintaining and so forth. at 4% each year in the course of the monetary years 2022-23 and 2023-24.
Above Rs.3.00 lakhs– As relevant now and again.
Processing price:
- KCC Limits as much as Rs. 50,000/- NIL
- Limits Rs 50,000 to Rs 1.50 lakhs: Rs.200 + GST
- Limits above Rs.1.50 lakhs to Rs.3.00 lakhs: Rs.250 per lakh or half thereof + GST
- Limits greater than Rs.3.00 lakhs: 0.35% of mortgage restrict + GST
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