Bank Of Maharashtra Kisan Credit Card 2024, Overview, Interest Rates & Eligibility

Overview

Bank of Maharashtra offers the Kisan Credit Card (KCC) with the name Mahabank Kisan Credit Card. It is a unique Scheme that facilitates credit credit to the farmers for their cultivation and other needs under a single window.

Objective

Mahabank Kisan Credit Card provides working capital for:

  • Cultivation of crops
  • Post harvest Expenses
  • Consumption requirements of farmer household
  • Maintenance of farm equipments
  • Working capital for allied agricultural activities

Eligibility

  • All farmers- Individual / Joint landholders
  • Tenant Farmers, Share Croppers, Oral Lessees
  • SHG/ JLG of farmers

Credit Limit

  • Limit for first year: Scale of finance of crop ( as decided by DLTC * Extent of area cultivated + 10% of limit towards post-harvest / household / consumption requirements + 20% of limit towards repairs and maintenance expenses of farm assets
  • From 2nd year onwards plus 10 % of the limit towards cost escalation / increase in scale of finance for every successive year ( 2nd,3rd ,4th and 5th year)

Margin

NIL as margin is considered while fixing Scale of Finance

Security

  • Limit Up to Rs 1 lakh: Hypothecation of Crops
  • Limit Above Rs 1 lakh: Hypothecation of Crops & Third Party Guarantee/ Mortgage of Land

Documentation

1.Loan application ie Form No -138, Enclosure - B2

  • All 7/12, 8 A, 6 D extracts, Chatu Sima of the applicant
  • No dues certificates of the applicant from surrounding financial institutions including PACS
  • Legal search from advocate on Bank's panel for loans above Rs.1.00 lakh where land is to be mortgaged
2. Guarantee form F-138: All 7/12, 8 A & PACS dues certificate of the guarantors

Interest Rate

  • Limit up to Rs3.00 lakhs: 7% p.a. (fixed) under interest subvention scheme up to one year
  • Limit above Rs3.00 lakhs: as applicable to Agricultural advances

Insurance

Insurance for the crops are available periodically based on government guidelines

Validity

The KCC limit is valid for 5 years subject to annual review

Repayment

  • Kharif: Next March
  • Rabi: Next June
  • Horticultural crops: Next September

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