Jammu And Kashmir Bank Limited Kisan Credit Card 2024, Overview, Interest Rates & Eligibility

Overview

Jammu and Kashmir Bank has introduced Jammu and Kashmir Bank Kisan Credit Card scheme which is a credit delivery mechanism to meet the production credit requirements of the farmers in a timely and hassle-free manner.

Objective

• The short term credit requirements for cultivation of crops
• Post harvest expenses
• Produce marketing loan
• Consumption requirements of farmer household
• Working capital for maintenance of farm assets and activities allied to agriculture, like dairy animals, inland fishery etc.
• Investment credit requirement for agriculture and allied activities like pump sets, sprayers, dairy animals etc.

Eligibility

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

Credit Limit

1. All farmers other than marginal farmers:
   • For first year: farmers raising single crop in a year(scale of finance*area cultivated +10% of limit towards post-harvest/house hold/consumption needs+ 20% of limit towards repairs and maintenance expenses of farm assets + crop insurance, PAIS and asset insurance.
   • For subsequent years: First year limit plus 10% of the limit towards cost escalation/increase in scale of finance for every successive year and estimated term loan for the tenure of kisan credit card.
   • For farmers raising more than one crop in a year: The limit is to be fixed as above depending upon the crops cultivated as per proposed cropping pattern for the first year and an additional 10% of the limit towards cost escalation / increase in scale of finance for every successive year
   • Term Loan is provided towards investment in land development, minor irrigation, purchase of farm equipments and allied agricultural activities. The quantum of credit for term and working capital limit for agricultural and allied activities, etc., is worked out based on the unit cost of the asset/s proposed to be acquired by the farmer, the allied activities already being undertaken on the farm, and on repayment capacity vis-a-vis total loan burden devolving on the farmer, including existing loan obligations.
   • The long term loan limit is based on the proposed investments during the five year period and the bank's perception on the repaying capacity of the farmer.
   • Maximum Permissible Limit: The short term loan limit arrived for the 5th year plus the estimated long term loan requirement will be the Maximum Permissible Limit (MPL) and treated as the Kisan Credit Card Limit.
   • Fixation of Sub-limits: The card limit is bifurcated into separate sub limits for short term cash credit limit cum savings account and term loans, due to difference in interest rates, repayment schedule and norms.
2. For Marginal Farmers: A flexible limit of Rs.10,000 to Rs.50,000 be provided (as Flexi KCC) based on the land holding and crops grown including post harvest warehouse storage related credit needs and other farm expenses, consumption needs, etc., plus small term loan investments like purchase of farm equipments, establishing mini dairy/backyard poultry as per assessment of Branch Manager without relating it to the value of land. The composite KCC limit is to be fixed for a period of five years on this basis.

Margin

To be decided by the bank.

Security

• Credit up to Rs. 1 lakh: Hypothecation of crops.
• With tie-up for recovery: Banks may consider sanctioning loans on hypothecation of crops up to card limit of Rs.3 lakhs without insisting on collateral security.
• Collateral security may be obtained at the discretion of Bank for loan limits above Rs.1 lakh in case of non tie-up and above Rs.3 lakhs in case of tie-up advances.

Interest Rate

Rate of Interest will be linked to Base Rate and is left to the discretion of the banks. Interest Subvention/Incentive for prompt repayment as advised by Government of India and / or State Governments. The banker will make the farmers aware of this facility.

Insurance

The KCC holder should have the option to take benefit of Crop Insurance, Assets Insurance, Personal Accident Insurance Scheme (PAIS), and Health Insurance (wherever product is available and have premium paid through his KCC account). Necessary premium will have to be paid on the basis of agreed ratio between bank and farmer to the insurance companies from KCC accounts. Farmer beneficiaries should be made aware of the insurance cover available and their consent is to be obtained, at the application stage itself.

Validity

The Kisan Credit Card is valid for five years, subject to annual review.

Repayment

Each withdrawal is allowed to be liquidated in 12 months. No need to bring the debt balance in the account to zero at any point of time. No withdrawal in the account should remain outstanding for more than 12 months. The term loan component will be normally repayable within a period of 5 years depending on the type of activity / investment as per the existing guidelines applicable for investment credit.

Disbursement

The short term component of the KCC limit is in the nature of revolving cash credit facility. There should be no restriction in number of debits and credits. However, each instalment of the drawable limit drawn in a particular year will have to be repaid within 12 months. The drawing limit for the current season/year could be allowed to be drawn using any of the following delivery channels:

• Operations through branch
• Operations using Cheque facility
• Withdrawal through ATM / Debit cards
• Operations through Business Correspondents and ultra thin branches
• Operation through PoS available in Sugar Mills/ Contract farming companies, etc., especially for tie- up advances
• Operations through PoS available with input dealers
Mobile based transfer transactions at agricultural input dealers and mandis.

Processing Fee

May be decided by the bank.

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