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Indian Bank Kisan Credit Card 2024, Overview, Interest Rates & Eligibility

Overview

Indian Bank, Public Sector Bank has launched Indian Bank RuPay Kisan Credit Card on RuPay Platform in order to provide adequate, hassle-free and timely credit to farmers for expenses related to agriculture and allied activities under a single window. The project is sponsored by National Bank for Agriculture and Rural Development (NABARD).

Objective

  • To meet the short term credit requirements for cultivation of crops
  • Post harvest expenses
  • Produce Marketing loan
  • Consumption requirements of farmer households
  • Working capital for maintenance of farm assets and activities allied to agriculture, like dairy animals, inland fisheries etc
  • Investment credit requirements for agriculture and allied activity like pumpsets, sprayers, dairy animals, etc.

Eligibility

  • All Farmers - Individuals / Joint borrowers who are owner cultivators
  • Tenant Farmers, Oral Lessees & Share Croppers
  • SHGs or Joint Liability Groups of Farmers including tenant farmers, share croppers etc.

Credit Limit

  • Assessment of crop loan component based on the scale of finance for the crop plus insurance premium x extent of area cultivated + 10% of the limit towards post-harvest / household/consumption requirements + 20% of limit towards maintenance expenses of farm assets
  • Flexi KCC with simple assessment prescribed for Marginal Farmers
  • KCC cum SB account to be provided to farmers instead of having two separate accounts. The credit balance in KCC cum SB accounts is to be allowed to fetch interest at savings bank rate
  • No processing fee up to a limit of Rs. 3 lakhs

Margin

For crop loans, no separate margin need to be insisted as the margin is in-built in scale of finance.

Interest

  • For loans upto Rs. 3 lakhs: 7% p.a.
  • Loans above Rs. 3 lakhs: ROI linked to Base Rate based on Lending Rates as decided by Indian Bank from time to time

Security

  • Hypothecation of crops up to card limits of Rs 1 lakh as per RBI extant guidelines
  • With tie-up for recovery: Hypothecation of Crops up to card limit of Rs.3 lakhs without insisting on collateral security
  • Collateral security by way of mortgage of immovable property is to be obtained for loan limits above Rs.1 lakh in case of non tie-up and above Rs.3 lakhs in case of tie-up advances
  • In States where banks have the facility of online creation of charge on the land records, the same shall be ensured
  • Security as applicable as per RBI guidelines prescribed from time to time

Documentation

  • Duly filled application form
  • Passport size photographs of the applicant
  • Identity Proof (anyone): Aadhaar Card, PAN Card, Voter ID
  • Address Proof (anyone): Utility Bills, Aadhaar Card, Ration Card
  • Land documents (optional), submit only if required for by Indian Bank
  • One time documentation at the time of first availing the credit and thereafter simple declaration (about crops raised/ proposed) by farmer

Interest Rate

Interest rate, prevaling from time to time, will be applicable for the loans financed under the scheme.

Validity

Validity of KCC for 5 years.

Repayment

  • No withdrawal in the account to remain outstanding for more than 12 months; no need to bring the debit balance in the account to zero at any point of time
  • The term loan component will be repayable depending on the type of activity/ investment as per the existing guidelines applicable for investment credit
  • Interest subvention /incentive for prompt repayment to be available as per the Government of India and / or State Government norms

Disbursement

Disbursement to be effected through various delivery channels, including ICT driven channels like ATM/ PoS/ Mobile handsets.

Processing Fee

No processing fee up to a limit of Rs. 3 lakhs.

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:

  1. Death due to accident (within 12 months of the accident) caused by outward, violent and visible means: Rs 50,000
  2. Permanent total disability: Rs.50,000
  3. Loss of two limbs or two eyes or one limb and one eye: Rs.50,000
  4. 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

 

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