Under the Kisan Credit Card, the bank gives loans to the farmers at very low interest, while taking a loan from any other source attracts a lot of interest. Under the Kisan Credit Card Scheme, farmers get loans for a minimum period of 12 months. Loans ranging from 1 lakh to 1 lakh 60 thousand are given to farmers at very low interest rates without any security. Apart from farmers, poultry, fish farmers and cattle rearers also get the benefit of this scheme of Kisan Credit Card. This loan is given to farmers to increase the production of fields and to cattle rearers to increase their income. Only those farmers can take advantage of the Kisan Credit Card Scheme who have their own land. The amount of loan also depends on the land, if the farmer’s land is full of irrigation means then the limit of the Kisan Credit Card loan increases, if the irrigation is deprived of the means then the limit of the Kisan Credit Card loan decreases.
kisan credit card interest rate
According to an RBI statement, farmers who use the Kisan Credit Card (KCC) to obtain short-term loans will only be required to pay 4% interest provided they pay back the money within a year of the loan’s distribution date. On Wednesday, November 23, the interest rate for Kisan Credit Cards (KCC) short-term loans up to Rs 3 lakh was disclosed by the Reserve Bank of India (RBI).Agriculture and related industries, including as dairy, fishery, beekeeping, and animal husbandry, are eligible for short-term loans through KCC. The government has approved the continuation of the Interest Subvention Scheme (ISS) with modification for FY 2022–2023 and FY 2023–2024, according to a notification from the central bank.
Interest rate: For farmers utilizing KCC, the interest rate for short-term loans up to Rs 3 lakh will be 7%. Lending institutions would receive an interest subsidy of 1.5%. These rates are applicable for the fiscal years 2022–2023 and 2023–2024..
Discount 3%
Farmers would receive an extra 3% interest subsidy for timely loan repayment. Thus, for these farmers, the effective rate of interest would be only 4%.
“To farmers who repay their loans on time, meaning from the date of disbursement to the actual date of repayment or until the due date set by the banks for repayment of such loan(s), whichever is earlier, an additional interest subvention of 3% per year will be provided, subject to a maximum period of one year from the date of disbursement,” the RBI stated.
How to apply kisan credit card online
1. Go to the bank’s website to submit an application for the Kisan credit card scheme.
2. Select the Kisan Credit Card from the list of available alternatives.
3. The website will take you to the application page when you select the “Apply” option.
4. After entering the necessary information, click “Submit” on the form.
5. An application reference number will be issued after that. Within three to four business days, the bank will contact you if you are qualified for the next step in the process.
how to apply kisan credit card offline
You can submit an offline application by visiting the branch of the bank of your choice or by downloading the form from the bank’s website. With the assistance of the bank agent, the applicant can visit the branch and start the application procedure.
The KCC Card initiative intends to give farmers flexible and streamlined procedures along with sufficient and timely credit support from the banking system for their crop and other needs, as listed below, all under one single window:
to fulfill the needs for short-term loans necessary for crop cultivation;post-harvest costs; generate marketing loans; meet family consumption needs of farmers; provide working money for upkeep of farm equipment and related operations;Requirement for investment finance in agriculture and related fields