KISAN CREDIT CARD

SHORT TERM FINANCE TO FARMERS

Scheme

Purpose

Kisan Credit Card Scheme aims at providing adequate and timely credit support from the banking system under a single window to the farmers for their cultivation & other needs.

Eligibility

Target Audience

All Farmers - Individuals / Joint borrowers who are owner cultivators / Tenant Farmers, Oral Lessees & Sharecroppers/ SHGs or Joint Liability Groups of Farmers/ including tenant farmers, sharecroppers etc.

Age Criteria

Minimum 18 years

Other Criteria

Proof to be submitted on Land area/ Crop Cultivated/ Ownership of allied units

AADHAR to be linked mandatory with account before availing loan under this scheme

Financials

Quantum

Limit is arrived based on area of land cultivated/ no. of units * Scale of finance

Margin

Scale of finance is inclusive of Margin and additionally no margin is required.

Rate of interest

Ranges from 10.15% to 11.30% based on rating.

For loan amount up to Rs.3.00 Lakhs, interest rate will be capped at 7%

Interest Subvention

Interest subvention is available at 1.50% p.a. and prompt repayment incentive of 3.00% p.a. of the loan is repaid in time.

Interest subvention and prompt repayment incentive is available up to Rs. 3.00 lakhs for crop loans and up to Rs. 2.00 Lakhs for allied activities.

Processing charges

Up to Rs. 3.00 Lakhs - Nil

Above Rs. 3.00 Lakhs - 0.30% on the value of commodity pledged

Tenure

Repayment period

Limit is valid for 5 Years subject to renewal on every year.

Security

Up to Rs.2.00 Lakhs

Hypothecation of crops /assets created out of loan

Above Rs.2.00 Lakhs

Hypothecation of assets & Suitable Collateral with 100% coverage for the loan amount.