Amid the corona crisis, government has announced new interest rate on Kisan Credit Card (KCC). Kisan Credit Card which was launched in 1998 offers short-term credits to farmers, individual or a group of owner-cultivators, sharecropper, self-help group and joint-liability group farmers, fish farmers, marine fishermen, poultry, dairy, and women groups . They can avail loan upto Lakhs by applying online for Kisan credit card.
Kisan Credit Card New Interest Rate:
Amid the corona crisis, government has announced new interest rate on Kisan Credit Card. Prime Minister Narendra Modi has recently launched a saturation campaign for distribution of Kisan Credit Card Yojana to all beneficiaries under PM Kisan Yojana in Chitrakoot, Uttar Pradesh. Under this initiative, KCC (KCC Scheme) has been provided to more than 25 lakh beneficiaries of PM Kisan across the country and more than 2,000 bank branches in rural areas have been tasked with providing KCC to farmers.
For loans under the KCC scheme, the farmer has to pay simple interest at the rate of 7 percent per annum for one year per year or till the due date, whichever is earlier. In the event of non-repayment within the due dates, interest is charged on the Kisan Credit Card rate. However, if they fail to pay within the due date, the interest will be reduced half-yearly. However, the crops for which loans have been given, the repayment period can be fixed according to the anticipated harvesting and marketing period for them.
How to apply for Kisan Credit Card?
There are several financial institutions that allow applying for KCC online. The process is user-friendly and simple.
Here is how you can complete the KCC loan online apply process:
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Visit the official website of the financial institution from which you want to avail the credit card.
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Select Kisan Credit Card from the list of available credit cards and click on ‘Apply’ to proceed with the application process.
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It will redirect to the online application page where you will have to fill your personal details, including the address and contact information.
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Once the duly-filled application form is submitted, you will receive an application reference number. It will be used for any future queries and references.
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Moreover, it usually takes 3 to 4 working days to process the application form after all the details are verified. The financial institution will inform you once your application form goes through the verification process.
Important Documents for Kisan Credit Card:
You will have to submit some basic documents like identity proof (Aadhaar Card, PAN Card, Voter ID), address proof, property document, recent passport size photograph, and any other special document (such as security PDC) that a particular financial institution might ask for.
What's the Limit of Kisan Credit Card?
Kisan Credit Card has a flexible limit of Rs. 10,000 to Rs. 50,000 for marginal farmers. But however, all other farmers will have their credit limits decided depending on the proposed cropping pattern and scale of finances. As per official, this limit can increase at a rate of 10% for every successive year up to 5th year. Farmers can also get accident insurance of a maximum of Rs. 50,000 with KCC.
Who is Eligible for this Loan?
According to the official website of SBI- www.sbi.co.in, all the farmers who are owner-cultivators, tenant farmers, oral workers, sharecroppers etc, single holding groups (SGH) or joint farmer groups, tenants including farmers are eligible for Kisan Credit Card loan under Kisan Credit Card Yojana.
