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

Overview

Federal Bank offers the Kisan Credit Card (KCC) with the name Federal Bank RuPay 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

Federal Kisan Cards are issued to farmers to meet their cultivation needs and non-farm requirements including purchase of inputs and other short term requirements and working capital requirements for allied activities in a flexible and cost effective manner.

Credit Limit

Minimum credit limit for Federal Kisan Credit Card is Rs.25,000/- and there is no ceiling on maximum amount. The limit is arrived at based on the operational Land holding, cropping pattern, scale of finance for crops grown, maintenance cost of Farm Animals, Farm machineries, allied activities and other contingent expenses of the applicant after insisting for 15% margin.

Margin

• Upto Rs. 1,00,000: Nil
• Above Rs. 1,00,000: 15 % to 25 %

Security

No collateral security for loans up to Rs.1,00,000/- under the scheme. For limits above Rs.1,00,000/- collateral security has to be provided.

Documentation

• Proof of Identity (anyone): Passport / Voters ID card/ Driving License/PAN Card
• Recent Passport size photograph
• Address Proof (anyone): Ration card Tel/ Electricity Bill/ Lease agreement/ Passport/ Trade license / Sales Tax certificate
• Proof of Land Tax receipt, possession certificate etc.

Interest Rate

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

Insurance

Insurance for the crops are available periodically based on government guidelines.

Validity

The Federal Kisan Card is for a period 60 months subject to an annual review. The operations in the account shall be through the issuing branch only.

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