Kotak Mahindra Bank Limited Kisan Credit Card 2024, Overview, Interest Rates & Eligibility
Overview
Kotak Mahindra Bank offers the Kisan Credit Card (KCC) with the name Kotak 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
- 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
- Short term credit limit for the first year is determined by the bank based on various factors.
- From 2nd year onwards, for every consecutive year, the sanctioned limit can be increased by 10% till the 5th year.
- In this way, the card holders are offered a high loan quantum under KCC crop loans.
Documentation
- Proof of Identity (anyone): Passport / Voters ID card/ Driving License/PAN Card
- Duly filled Application Form with recent passport size photograph
- Address Proof (anyone): Ration card Tel/ Electricity Bill/ Lease agreement/ Passport/ Trade license / Sales Tax certificate
- Documents of land holdings
- Documents pertaining to collateral and primary security, as required by the bank
Interest Rate
7% to 14%. The rate of interest is dependent on credit assessment parameters of the bank and is decided by the approving authority.
Insurance
Cardholders can apply for personal accident insurance scheme at nominal premium rates.
Repayment
- Credit taken from the KCC has to be repaid within a period of 12 months.
- Kisan Credit Card credit/loan will be a revolving account.
- The credit balance in the KCC account will fetch interest at savings bank rate.
- It provides more financial flexibility to the cardholders.
Processing Fee
No processing fee up to a limit of 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