Kerala Gramin Bank Kisan Credit Card 2024, Overview, Interest Rates & Eligibility
Overview
Kerala Gramin Bank Kisan Credit Card provides 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.
Objective
- Cultivation/ Crop production expenses of short duration crops.
- Annual maintenance of long duration crops/plantation crops/ postharvest expenses.
- Working capital requirements of allied activities like Dairy,Poultry, Piggery, etc.
- Annual maintenance/ repair cost of farm machinery/equipment.
- Maintenance/ repair cost of fencing, soil and water conservation structures.
- Post-harvest expenses.
- Consumption needs of farmers.
Eligibility
- All farmers - Individuals/ Joint borrowers who are owner cultivators.
- Self Help Groups (SHG) or Joint Liability Groups (JLG) of farmers including tenant farmers, share croppers etc.
- Loans under VFPCK scheme.
Credit Limit
As per Scale of finance for the crop as decided by the District Level Technical Committee (DLTC) plus crop insurance premium. 15-20% increase over scale of finance may be considered on merit.
Margin
No separate margin stipulated, as the same is inbuilt in Scale of Finance.
Security
- Upto Rs.1 lakh : Hypothecation of crops/farm assets
- Above Rs.1 lakh : Hypothecation of crops/farm assets and Equitable mortgage of landed property valued 150% of loan amount
- Security norms for KCC granted to SHGs & JLGs shall be as per respective schemes
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
- Land Tax Paid Receipt
- Possession Certificate
- Title deeds
- Any other documents as required by the bank
Interest Rate
- Upto Rs. 3 Lakhs: 12% , Interest subvention upto loan limit of Rs.3 lakhs for a person in short term agriculture schemes; subject to Government notification
- Above Rs. 3 Lakhs: 13%
Validity
The Kisan Credit Card is valid for five years, subject to annual review.
Repayment
- Tenable for 5 years
- Review is to be conducted every year
- Each withdrawal shall be repaid within one year from the date of such withdrawal
- Interest applied is due for payment on review date
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