Kisan Credit Card Scheme: Interest is charged at the rate of 7 percent on the loan taken on the Kisan Credit Card. But, if the farmer repays a loan within a year, then he will have to pay only 4 percent interest.
Kisan Credit Card Scheme: Kisan Credit Card is a great scheme to free farmers from the clutches of moneylenders and to take loans at cheap rates for agriculture. Under the scheme, farmers are given loans up to Rs 3 lakh. In Budget 2022, it is expected that the government can increase the limit of KCC loans further.
Kisan Credit Card limit may increase
Finance Minister Nirmala Sitharaman will present the General Budget (Budget 2022) on the table of Parliament on February 1. Experts say that big announcements can be made for the farmers in this budget. For some time, the issue of farmers has dominated the whole country. Therefore, the central government can make big announcements for the farmers. If agri experts are to be believed, then the Modi government can increase the limit of Kisan Credit Card. Loans are provided to farmers on Kisan Credit Card at a very low-interest rate (KCC interest rate).
Kisan credit card loan interest rate
The loan taken on Kisan Credit Card attracts interest at the rate of 7 percent. But, if the farmer repays a loan within a year, then he will have to pay only 4 percent interest.
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Crop Insurance too
This is a very good scheme for the farmers. Due to the Kisan Credit Card, farmers can also get their crops insured, due to which they are also compensated for the destruction of their crops. Kisan Credit Card is very useful in the event of a flood, if the crop gets spoiled due to drowning in water or in case of drought, the crop gets burnt.
Features of Kisan Credit Card (KCC Loan Scheme)
- Interest is given on the loan in the KCC account at the rate of the savings bank.
- Free ATM cum Debit card is given for KCC cardholders.
- State Bank of India gives Debit / ATM card in the name of State Bank Kisan Card.
- In KCC, interest subvention is available at the rate of 2% per annum for loans up to Rs 3 lakh.
- There is an additional interest subvention at the rate of 3% per annum on premature repayment of the loan.
- Crop insurance coverage is available on a KCC loan.
- The loan amount for the first year is decided on the basis of the cost of agriculture, post-harvest expenses, and the cost of land.
KCC Scheme terms
- No security is required for loans up to Rs 1.60 lakh.
- Interest will be charged at the rate of 7% for one year or till the date of repayment of the loan, whichever is earlier.
- In case of non-repayment within the due dates, interest will be payable at the card rate.
- Compound interest will be charged half-yearly after the due date.
Benefits of Credit Card Scheme (Kisan credit card benefits)
- All the farmers of the country can take advantage of Kisan Credit Card Scheme.
- A total of 14 crore farmers of the country will get the benefit of this scheme.
- The benefit of this scheme will be given to all the farmers from the Pradhan Mantri Kisan Samman Nidhi Yojana.
- The central government gives a loan of Rs 1.60 lakh through Kisan Credit Card.