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Kisan Credit Card (KCC)

Kisan Credit Card (KCC)



Purpose / Objective :

  • To meet out the short term credit requirements for cultivation of Crops, Post-harvest expenses.
  • Consumption requirements of Farmer Household.
  • Working Capital for maintenance of farm assets.

Eligibility :

  • All Farmers- Individuals/ Joint Borrowers who are owner cultivators.
  • Tenant Farmers, Oral Lessees and Share Croppers.
  • Self Help Groups or Joint Liability Groups of Farmers including tenant farmers, Share croppers etc.

Salient features :

  • Scale of finance for the crop (as decided by District Level Technical Committee) x Extent of area cultivated + 10%   of   limit   towards   post-harvest / household / consumption requirements + 20% of limit towards repairs and maintenance expenses of farm assets.
  • An additional 10% of the Crop Loan Component increase in Scale of Finance for every successive year
  • Validity of KCC is for 5 years.
  • No Margin.
  • No processing fee up to of Rs. 3.00 lakh.
  • Interest subvention /incentive for prompt repayment to be available as per the Government of India and / or State Government norms.
  • One time documentation at the time of first availment and thereafter simple declaration (about crops raised/ proposed) by the farmer.
  • KCC account holders can operate the KCC account through Branch, ATM, BC Points, PoS machines with input dealers/ merchants/ mandies.

Interest Rates :

  • Rate of Interest is linked to MCLR. However, if Government supported interest subvention is provided for any component of the limit, the rate of interest will be fixed accordingly. (Presently interest rate for short term crop loans/KCC sanctioned to farmers up to Rs 3.00 lakh is 7% as per extant interest subvention scheme of Government of India).
  • Long term loan limit under KCC is linked to MCLR.
  • Amount Slab(Rs. in Lakhs) Interest Rate
    Upto 3.00 Lakhs 7% (Wherever Interest Subvention is available)
    >3.00 Lakhs Please refer the Lending Rates link on home page in our Bank’s Website

Repayment :

  • Each withdrawal under the short term sub-limit be allowed to be liquidated in 12 months without the need to bring the debit balance in the account to zero at any point of time. No withdrawal in the account should remain outstanding for more than 12 months.
  • The term loan component will be repayable depending on the type of activity/ investment as per the existing guidelines applicable for investment credit

    Security :

    • For KCC limits upto Rs.1.60 Lakh : Hypothecation of Crops
    • For KCC limits upto Rs.3.00 Lakh (With tie up arrangement) : Hypothecation of Crops
    • Collateral Security : For limits above Rs.1.60 Lakhs (Without tie up arrangement) – Hypothecation of crops + Pledge of Jewels or Deposit receipts / LIC/NSC assignments / or collateral security by way of MOD / charge creation.
    * MCLR RATE – Available in Home Page

    ( Last modified on Sep 12, 2023 at 05:09:17 PM )

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