Central Bank Of India Kisan Credit Card 2024, Overview, Interest Rates & Eligibility
Overview
Central Bank of India offers the Kisan Credit Card (KCC) with the name "Cent Kisan Credit Card (CKCC)". It is single window credit assistance to the farmers for their cultivation & other needs.
Objective
Cent Kisan Credit Card provides credit assistance to the farmers:
- To meet short term credit requirements for cultivation of crops.
- To provide Post-harvest expenses & Produce Marketing loans.
- To meet consumption requirement of farmers.
- To meet working capital requirement for maintenance of farm equipments and other assets and activities allied to agriculture like dairy, fisheries etc.
Eligibility
- All Farmers - Individuals / Joint borrowers who are owner cultivators
- Tenant Farmers, Oral Lessees & Share Croppers
- Self Help Groups (SHGs) or Joint Liability Groups of Farmers
Facility
Short-term revolving credit
Credit Limit
- For the first year, limit will be fixed on the basis of:
- Scale of finance for the crop, plus
- 10% of limit towards post harvest expenses, plus
- 20% of limit towards repairs & maintenance, plus
- Crop insurance, Personal Accident Insurance & asset insurance.
- For second and subsequent years the limit will be arrived at by adding 10% towards cost escalation over limit of the preceding year.
Margin
Nil as it is inbuilt in the scale of finance
Security
- Primary: Hypothecation of crops and assets created out of bank's finance.
- Collateral: No collateral for limit upto Rs. 1 lakh & for limits above Rs. 1 lakh, collateral security is required.
Interest Rate
- Limit Upto Rs.50,000: MCLR + 0.50%
- Above Rs.50,000 upto Rs.5.00 lakhs: MCLR + 1.00%
- Above Rs.5.00 lakhs upto Rs.25.00 lakhs: MCLR + 1.50%
- Above Rs.25.00 lakhs: MCLR + 2.00%
Repayment
Limit will be valid for 5 years, subject to annual review
What is Personal Accident Insurance Scheme (PAIS) for KCC Holders?
Personal Accident Insurance Scheme (PAIS) is an accident insurance scheme especially designed for KCC holders. NABARD has, in consultation with the representatives of insurance companies, bankers and Govt. of India, finalised the Personal Accident Insurance Scheme for KCC holders, for uniform implementation by banks throughout the country. It was introduced on 14 June 2001.
It covers risk of KCC holders against:
- Death (or)
- Permanent Disability
Death (within 12 months of the accident) or permanent disability should be resulting from accidents caused by external, violent and visible means.
It gives following risk covers:
- Death due to accident (within 12 months of the accident) caused by outward, violent and visible means: Rs 50,000
- Permanent total disability: Rs.50,000
- Loss of two limbs or two eyes or one limb and one eye: Rs.50,000
- Loss of one limb or one eye: Rs.25,000
KCC holder has the option to take benefit of Accident Insurance (including PAIS) whose premium has to be paid by him through his KCC account. Premium payable Rs.15/- for a one year policy while Rs.45/- for a 3-year policy. Premium has to be borne by farmers/bank according to the terms of the Scheme. To avail this insurance cover, the applicant should not be over 70 years of age at the time of availing the Kisan Credit Card