State Bank Of India Kisan Credit Card 2024, Overview, Interest Rates & Eligibility
Overview
State Bank of India offers the Kisan Credit Card (KCC) with the name SBI Kisan Credit Card. It is a unique Scheme that aims at providing adequate, hassle-free and timely credit support from the banking system under a single window to the farmers for their cultivation & other needs.
Objective
To provide timely and adequate credit to farmers to meet their production credit needs (cultivation expenses) besides meeting contingency expenses, and expenses related to ancillary activities through simplified procedure facilitating availment of the loans as and when needed.
Eligibility
- All farmers-individual/ joint borrowers who are owner cultivators
- Tenant farmers, oral lessees and share croppers
- Self Help Groups (SHGs) and Joint Liability Groups (JLGs) of farmers including tenant farmers, share croppers, etc.
Facility
KCC will be in the nature of revolving account. Credit balance in the account, if any, to fetch interest at Savings bank rate.
Credit Limit
- Short term credit limit is fixed for the first year depending upon the crops cultivated as per proposed cropping pattern & scale of finance
- For every successive years (2nd, 3rd, 4th, and 5th year), the limit will be stepped up @10%.(short term credit limit sanctioned for 5th year will be about 150% of the first year limit allowed to farmers)
- The short term loan limit arrived for the 5th year as in (iv) plus estimated investment loan requirement as in (v) (highest among the five years) above will be the Maximum Permissible Limit (MPL) and sanctioned as the Kisan Credit Card Limit
Security
Collateral security is waived for limit of up to Rs.1 lakh but for limit up to Rs.3 lakhs, it will be with tie-up arrangement for recovery.
Interest Rate
Interest rate, prevaling from time to time, will be applicable for the loans financed under the scheme.
Insurance
Crop Insurance, Personal Accident Insurance Scheme (PAIS) and Asset Insurance.
Validity
KCC validity period is 5 years
Repayment
- Kharif crop (1st April to 30th September): 31st Jan
- Rabi crop (1st October to 31st March): 31st July
- Double/ Multiple Crops (Kharif & Rabi seasons): 31st July
- Long term Crops (All round the year): 12 months (from the date of first disbursement)
Disbursement
As per the cultivation requirements of the crop, the loan will be disbursed in cash.
Processing Fee
Processing charges waived for KCC limit up to 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:
- 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