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

Overview

Syndicate Kisan Credit Card is a hassle free single window facility for farmers to meet their seasonal production credit and other incidental short term credit requirements for farm and off farm purposes in time.

Objective

With Syndicate Kisan Credit Card, multiple needs of farmers are met in the features of the facility listed below:

  • Short term credit requirements for cultivation of crops.
  • Working capital requirement for maintenance of farm assets and activities allied to agriculture like dairy animals, inland fishery etc.
  • Post harvest / household / consumption expenses to some extent.
  • Premium requirements of mandatory Insurance of crops notified by State Govt / Agriculture Insurance Company of India Ltd and Personal Accident Insurance. Premium for Asset / Health Insurance is included at the option / consent of farmer.
  • Provision for fixing staggered limits for the entire period of 5 years to take care of the cost escalation and changes in crops grown / proposed to be grown each year.
  • No need bring the debit balance in the account to zero at any point of time.

Interest Rate

  • Bank is implementing interest subvention scheme of Govt. of India in respect of short term crop production loan amount up to Rs. 3 Lakhs and the applicable interest rate is 7% p.a.
  • In addition, an incentive subvention of 3% p.a. is provided to those farmers who repay their loans in time. Thus, the ultimate rate works out to 4% p. a. for loans up to Rs. 3 lakhs on prompt repayment.

Insurance

Personal Accident risk insurance cover available up to Rs. 50,000/- for farmers up to 70 years of age with nominal amount of premium. Insurance cover is applicable only for death due to accident and Permanent Total Disability arising out of accidents.

Validity

The credit limit extended under the scheme is valid for 5 years.

Repayment

Period for liquidation of each drawal in the limit is up to 12 months for short duration crops and 18 months for long duration crops.

Disbursement

  • Withdrawals by withdrawal slip, Cheque or through Rupay Kisan Card at the discretion / option exercised by the farmer.
  • Operation is flexible as there is absolutely no restriction on number of withdrawals or credits into the account. Farmers can make withdrawals whenever necessary to the extent of their need within the limit and repay as and when seasonal farm income is realized.

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