Kisan Credit Card (KCC) is a programme launched in India in the year 1988. It offered farmers in order to enable them to access affordable credit for farmers. It was launched by the Reserve Bank of India (RBI) and National Bank for Agriculture and Rural Development (NABARD). In order to assist agriculturists to have easily accessible cash credit facilities, RBI has asked banks to issue smart cards/ debit cards to farmers. This scheme aims to reduce farmer dependence on the informa; banking sector for loan which can be very expensive and suck them into a debt spiral.
It provides flexibility in terms of repayment which can be rescheduled in the event of unforeseen incidents like a bad crop season with term extensions for a period of upto 4 years and so on. It is valid for upto five year is dependent on annual renewals. These cards are capable of storing adequate information on farmer' identity, assets and credit profile. It has been widely recognised as a massive reform in agriculture lending in India. This programme got huge success and it affects the farmers and rural households in a beneficial manner.
This scheme was launched to assist agriculturists to have easily accessible cash credit facilities. This card allows farmers to obtain timely adequate debt without facing any difficulty such as repeated screening process undertaken by financial institutions. It do not put any pressure of repayment on farmers. The repayment period is rescheduled in the event of unforeseen incidents like a bad crop season with the extension period of upto 4 years or more. This card is valid upto to five years. It is is dependent on the annual renewals. Farmers or rural households can get the money through normal withdrawals or through bank slips or also through passbook of their account which can record all their transactions.
Central also favoured the farmers by allowing them to get the debt amount from ATMs, point of sale (POS) Terminals, dealers, traders and mandies to meet their operational needs. These cards are enough capable to store all the adequate information on farmer's identity, assets and credit profile. Farmers can the benefit of this scheme by any cooperative , regional as well as by public sector banks.
Features of Kisan Credit Card Loan
Maximum Withdrawal amount limit: Maximum amount limit is based upon the agricultural income of the farmer or a rural household. Short term limit is fixed for the first year depending upon the cropping pattern and scale of finance of the cultivated crops. For tour trương gia giới every successive year the limit will be increased at the rate of 10% of the short term limit and in the 5 th year the limit will 150 % of the year.
Purpose: The basic purpose of kisan credit card loan is to help the farmers to buy seeds. It can also be used to purchase fertilizers of farmer's convenience and choice.It helps the farmers or rural households to the cash availing discounts from the dealers. It provides ease to the farmers so that they can get the post harvest and household expenses which helps them in fulfilling their consumptions requirements.
Collateral security: Collateral security is required for a limit of 1 lakh INR. It is also required for a limit upto 3 lakhs INR with tie up arrangement of recovery.
Repayment: In this scheme, there is no pressure on the farmers of repayment as they can repay the loan amount after the harvest season is over. They can pay after they earned some revenue. With these benefits, this scheme also provide farmers easy and flexible repayment options.
Number of Withdrawals: There is no such limit on the number of withdrawals. Farmer can withdraw multiple times, whenever he wants under the limit amount, he is allowed to withdraw.
Interest rates: Interest offered on KCC are very low. Banks provides dependable and easily available cash which enable a decrease in the interest rates and also decrease the burden from the farmer's head.
Processing charges: Processing fee are charged only on the KCC with the limits upto 3 lakhs INR. The processing fee is also very low.
Documentation: Kisan credit card loan are approved with minimum documentation and are just similar as the agricultural advances. Minimal documentation and maximum flexibility is offered for withdrawal of funds from the Banks.
Disbursement: Disbursement is easy and quick for this scheme. The Disbursement procedure removes rigidity of cash. This scheme provides another ease and flexibility to the farmers that there is no need to apply for tour phượng hoàng cổ trấn the cash for every crop.
Any farmer with age between 18 years to 75 years can apply for the Kisan Credit card loan. Duly Signed application form with ID proof and Address Proof is required to submit in the nearest bank to apply for the Kisan credit card loan.
Sharmeen, has a keen interest in writing about loans and is an expert in writing about credit card and business loan. She has given her share of knowledge on the products offered by Kisan Credit card loan and has helped people make the right choice.
It provides flexibility in terms of repayment which can be rescheduled in the event of unforeseen incidents like a bad crop season with term extensions for a period of upto 4 years and so on. It is valid for upto five year is dependent on annual renewals. These cards are capable of storing adequate information on farmer' identity, assets and credit profile. It has been widely recognised as a massive reform in agriculture lending in India. This programme got huge success and it affects the farmers and rural households in a beneficial manner.
This scheme was launched to assist agriculturists to have easily accessible cash credit facilities. This card allows farmers to obtain timely adequate debt without facing any difficulty such as repeated screening process undertaken by financial institutions. It do not put any pressure of repayment on farmers. The repayment period is rescheduled in the event of unforeseen incidents like a bad crop season with the extension period of upto 4 years or more. This card is valid upto to five years. It is is dependent on the annual renewals. Farmers or rural households can get the money through normal withdrawals or through bank slips or also through passbook of their account which can record all their transactions.
Central also favoured the farmers by allowing them to get the debt amount from ATMs, point of sale (POS) Terminals, dealers, traders and mandies to meet their operational needs. These cards are enough capable to store all the adequate information on farmer's identity, assets and credit profile. Farmers can the benefit of this scheme by any cooperative , regional as well as by public sector banks.
Features of Kisan Credit Card Loan
Maximum Withdrawal amount limit: Maximum amount limit is based upon the agricultural income of the farmer or a rural household. Short term limit is fixed for the first year depending upon the cropping pattern and scale of finance of the cultivated crops. For tour trương gia giới every successive year the limit will be increased at the rate of 10% of the short term limit and in the 5 th year the limit will 150 % of the year.
Purpose: The basic purpose of kisan credit card loan is to help the farmers to buy seeds. It can also be used to purchase fertilizers of farmer's convenience and choice.It helps the farmers or rural households to the cash availing discounts from the dealers. It provides ease to the farmers so that they can get the post harvest and household expenses which helps them in fulfilling their consumptions requirements.
Collateral security: Collateral security is required for a limit of 1 lakh INR. It is also required for a limit upto 3 lakhs INR with tie up arrangement of recovery.
Repayment: In this scheme, there is no pressure on the farmers of repayment as they can repay the loan amount after the harvest season is over. They can pay after they earned some revenue. With these benefits, this scheme also provide farmers easy and flexible repayment options.
Number of Withdrawals: There is no such limit on the number of withdrawals. Farmer can withdraw multiple times, whenever he wants under the limit amount, he is allowed to withdraw.
Interest rates: Interest offered on KCC are very low. Banks provides dependable and easily available cash which enable a decrease in the interest rates and also decrease the burden from the farmer's head.
Processing charges: Processing fee are charged only on the KCC with the limits upto 3 lakhs INR. The processing fee is also very low.
Documentation: Kisan credit card loan are approved with minimum documentation and are just similar as the agricultural advances. Minimal documentation and maximum flexibility is offered for withdrawal of funds from the Banks.
Disbursement: Disbursement is easy and quick for this scheme. The Disbursement procedure removes rigidity of cash. This scheme provides another ease and flexibility to the farmers that there is no need to apply for tour phượng hoàng cổ trấn the cash for every crop.
Any farmer with age between 18 years to 75 years can apply for the Kisan Credit card loan. Duly Signed application form with ID proof and Address Proof is required to submit in the nearest bank to apply for the Kisan credit card loan.
Sharmeen, has a keen interest in writing about loans and is an expert in writing about credit card and business loan. She has given her share of knowledge on the products offered by Kisan Credit card loan and has helped people make the right choice.
