Meghalaya Rural Bank Kisan Credit Card 2024, Overview, Interest Rates & Eligibility

Overview

Meghalaya Rural Bank, one of the major Gramin Banks has launched Meghalaya Rural Bank Kisan Credit Card to provide adequate, hassle-free and timely credit to farmers for expenses related to agriculture and allied activities under a single window. Cultivation of short-term crops (Short Term Seasonal Agricultural Operations) and meeting contingency expenses subject to 20% of the peak credit limit.

Objective

To provide time and adequate credit to farmers to meet the production credit needs (cultivation expenses) besides meeting contingency expenses subject to 20% of the peak credit limit without any maximum limit (medical expenses, education expenses for children, marriage, funerals, birth, religious ceremonies etc) and expenses related to ancillary activities through simplified procedure facilitating the borrowers for availing loans as and when they need.

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.

Facility

  • Cash Credit: Credit for Short Term Agricultural Operation, contingencies for repairs/maintenance/expenses, domestic consumption requirements, expenses related to ancillary and allied activities.
  • Term Loan: For agricultural activity like purchase of agricultural machinery/equipments/implements etc. and for allied activities e.g. purchase of animals for dairy, poultry etc.

Credit Limit

  • Credit limit is based on operational land holding, cropping pattern and scale of finance. The credit limit under the Kisan Credit Card shall be fixed by taking into account the entire production credit requirements of the farmer for the full year and for every successive year. Cash credit limit is based on operational land holding, scale of finance + meeting contingency expenses subject to 20% of credit limit.
  • Term Loan Limit: Term loan for investment towards land development, minor irrigation, purchase of farm equipments and allied agricultural activities shall based on proposed scheme, the bank judgment on repaying capacity vis-a -vis total loan burden on the farmer etc.
  • A Flexi KCC limit of Rs. 10,000/ to Rs. 50,000/- with simple assessment is prescribed for Marginal Farmers based on land holding and crops grown.

Margin

  • For Crop Loan: NIL
  • For Term Loan Up to Rs. 1 lakh: NIL
  • For Term Loan Above Rs.1 lakh:15% to 25%
  • For Term Loan component, it will be in conformity with the guidelines of RBI from time to time

Security

  • Loan up to Rs. 1 Lakh: Hypothecation of crop
  • Loan above Rs. 1 Lakh: In addition to Hypothecation of crop, other collateral security in the form of lien on deposits, mortgage of land, third party guarantee
  • In case of Tie-up Arrangement: In case of any tie-up arrangement for recovery loan up to Rs. 3 lakhs may be sanctioned without collateral security.

Interest Rate

Interest will be levied as per the prevailing rate of interest circulated by Head Office from time to time. The interest is applicable at the prevailing Savings Bank Interest rate and shall be paid on credit balances on daily product basis.

Insurance

  • NAIS: Crop Insurance: Eligible crops in the notified area will be covered under National Agricultural Insurance Scheme(NAIS).
  • Assets created out of long term loan shall have to be insured with a Registered Insurance Company.
  • PAIS: All KCC holders shall have to be covered under Personal Accident Insurance coverage (PAIS) for an amount of Rs. 50,000.
  • Other: Asset created out of Bank loan in case of investment credit shall have to be insured.
  • PAIS & Premium Burden: KCC holders have been covered under Personal Accident Insurance Scheme against Personal death or permanent disability up to maximum amount of Rs 50,000 and Rs 25,000 respectively. The premium burden will be shared by the financing Bank and the borrower in the ratio of 2:1(Bank: Borrower). Premium payable Rs 15/- for a one year policy while Rs 45/- for a 3 year policy.

Validity

The Kisan Credit Card is valid for five years, subject to annual review.

Repayment

  • Cash Credit: Cash Credit is repayable within 60 days of harvesting. No withdrawal in the account should remain outstanding for more than 12 months. Each drawl is to be repaid within a maximum period of 12 months.
  • Term Loan: The term loan component will be repayable within a period of 5 years depending on the type of activity/investment as per existing guidelines for investment credit.

Processing Fee

No Processing fee or pre-payment charges on KCC.

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