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

Overview

Uco Bank offers the Kisan Credit Card (KCC) with the name Uco Bank 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

  • To meet the short term credit requirements for cultivation of crops
  • Post Harvest Expenses
  • Produce Marketing loan
  • Consumption requirement 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 or Joint Liability Groups of Farmers including tenant farmers, share croppers etc.

Facility

Cash Credit (Direct Agriculture)

Credit Limit

  • Assessment of crop loan component based on the scale of finance for the crop (as decided by DLTC) plus insurance premium X Extent of area cultivated + 10% of the limit towards post-harvest / household / consumption requirements + 20% of limit towards maintenance expenses of farm assets.
  • Limit for second & subsequent year: first year limit for crop cultivation purpose arrived at as above plus 10% of the limit towards cost escalation/increase in scale of finance for every successive year (2nd, 3rd, 4th & 5th year ) and estimated Term loan component for the tenure of Kisan Credit Card, i.e., 5 years.
  • Flexi KCC with simple assessment prescribed for marginal farmers.

Margin

For crop loans, no separate margin need to be insisted as the margin is in-built in scale of finance.

Security

  • Up to card limit of Rs. 1 lakh: Hypothecation of crops
  • With tie-up for recovery: Branch may consider sanctioning loans on hypothecation of crops upto card limit of Rs.3.00 lakh without insisting on collateral security.
  • Collateral security may be obtained at the discretion of Branch for loan limits above Rs.1.00 lakh in case of non tie-up and above Rs.3.00 lakh in case of tie-up advances.

Interest Rate

  • Agril Crop Loan up to Rs. 3.00 lakhs: 7.00%, reduced to 3.00% for Prompt paying farmers due to Interest Subvention
  • Above Rs. 3 lakhs and upto Rs. 25 lakhs: Base Rate +1.00%
  • Above Rs. 25 lakhs and upto Rs. 1.00 crore: Base Rate +2.00%

Insurance

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

Validity

Validity of KCC for 5 years.

Repayment

No withdrawal from the KCC account to remain outstanding for a period of more than 12 months. There is no need to bring the debit balance to zero in the account at any given point of time.

Disbursement

Disbursement through various channels, including ICT driven channels like ATM/PoS/Mobile handsets.

Processing Fee

No processing fee upto 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:

  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