KCC Loan Deadline: The deadline to deposit the loan taken on the Kisan Credit Card (KCC) for farming is tomorrow i.e. 31 August 2020 (Monday). Farmers have to deposit the money in the bank with the principal and 4 percent interest. But, the farmers need not panic as after 24 hours of depositing the money, the money can again be withdrawn for farming on the condition that you have no liability in the bank.
As per bank official, if a farmer deposits money by August 31, then on September 1, he will be able to take the money again. Sensible farmers can take advantage of interest rebate by depositing money on time.
It can be noted that normally, loans taken on KCC have to be repaid by 31 March. But, due to the lockdown, the Modi government has extended its deadline from 31 March to 31 May. It was then later extended to 31 August 2020. In other words, farmers can pay the interest of kisan credit card at the old rate of only 4% per year till the time fixed. Later it will be 3 percent more expensive (7 percent).
KCC: Lowest interest rate
The interest rate for loans taken up to 3 lakh rupees on KCC is 9%. However, the government gives a subsidy of 2 percent in it which comes to 7%. But if farmers return on time, then they get 3% more discount. Thus, in this way, its rate is only 4% for the farmers who are aware.
8 crore Kisan Credit Card Holders
Banks inform the farmers and ask them to repay the loan by March 31. However, if the farmers do not pay the loan till that time, then they have to pay 7 percent interest. Presently, there are around eight crore KCC holders in the country.
It is to be noted that, a loan of Rs 1.60 lakh is available on KCC without any guarantee. Earlier this limit was only Rs 1 lakh. Now the government has also made easier to take a KCC loan. Banks have been asked to issue KCC within 15 days of submission of application for loan. All the processing charges of banks on KCC have been abolished.
