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

Overview

Jammu and Kashmir Grameen Bank has introduced Jammu and Kashmir Grameen Bank Kisan Credit Card to provide adequate, hassle-free and timely credit to farmers for expenses related to agriculture and allied activities under a single window.

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.
    • In case revision of scale of finance for any year by the DLTC exceeds the notional hike of 10%, a revised drawable limit may be fixed and the farmer is advised about the same. Term loans Investments.
    • 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.

Security

  • Hypothecation of crops upto card limit of 1 lakh as per RBI guidelines
  • 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.

Documentation

  • Proof of Identity (anyone): Passport / Voters ID card/ Driving License/PAN Card
  • Duly filled Application Form with 2 recent passport size photographs
  • Address Proof (anyone): Ration card Tel/ Electricity Bill/ Lease agreement/ Passport/ Trade license / Sales Tax certificate
  • Documents of land holdings ownership
  • Proof of Income as required by the bank
  • Documents pertaining to collateral and primary security, as required by the bank

Interest Rate

Rate of Interest will be linked to Base Rate and is left to the discretion of the banks.

Validity

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

Repayment

The aggregate credit in the account during the 12 month period should at least be equal to the maximum outstanding in the account and no drawal in the account shall remain outstanding for more than 12 months. For Term Loans, the credit granted under the Kisan Credit Card Schemes is to be repaid in 5 years.

Disbursement

Disbursement through various channels, including ICT driven channels like ATM/PoS/Mobile handsets.

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

 

About Kisan Credit Card

Kisan Credit Card By Bank