SBI Kisan Credit Card: Eligibility, documents required, other details

Kisan Credit Card (KCC) is aimed at providing loans to farmers at a low rate of interest. Farmers can avail a loan as and when they require. Several banks such as State Bank of India (SBI) offer the facility of availing KCC. All farmers – individuals/joint cultivator owners, tenant farmers, oral lessees and share croppers, SHGs or joint liability groups including tenant farmers are eligible to avail KCC.

Duly filled in application form, identity proof and address proof are required as document proof to get KCC.

Customers can avail interest at saving bank rate on credit balance in KCC account.

Interest subvention at 2 percent is available for loan amount up to Rs 3 lakh.

Additional interest subvention at 3 percent is available for prompt repayments.

Quantum of loan for first year is assessed on the basis of cost of cultivation, post-harvest expenses and farm maintenance cost.

For subsequent 5 years,  loan will be sanctioned on the basis of increase in scale of finance.

Collateral security is waived for KCC limit up to Rs 1.60 lakh.

Simple interest at 7 percent is charged for one year or up to the repayment due date, whichever is earlier.

In case of non-repayment within the due dates interest is applied at card rate. Beyond due date, interest is compounded half yearly.

The repayment period may be fixed as per the anticipated harvesting and marketing period for the crops for which a loan has been granted.