4. Kisan Credit Card (KCC)
Purpose
To provide timely and adequate credit to farmers to meet their production credit needs (cultivation expenses) besides meeting contingency expenses, and expenses related to ancillary activities through simplified procedure facilitating availment of the loans as and when needed.
Eligibility
• Owner cultivators, tenant cultivators and Share croppers.
• Agricultural borrowers having good track record for the last 2 years (i.e., Maintaining standard loan accounts).
• Creditworthy new borrowers can also be financed.
Loan
100% of the cultivation cost available as loan upto Rs 50000/ and 85 % of the cost as loan above Rs 50000/. Expenses to meet important ancillary activities to production can also be financed in addition to the above The total limit is inclusive of 20% of production credit, which includes crop production expenses and working capital for allied agricultural activity, as contingency credit /consumption loan.
Disbursement of the Loan
As per the cultivation requirements of the crop, the loan will be disbursed in cash .
Security
Loan amount upto Rs 50000/ Hypothecation of Crops.
Above Rs 50000/ upto Rs 100000 (1) Hypothecation of crops.
(2) Mortgage of land or third party guarantee *
Above Rs 100000/</O:P< SPAN> (1) Hypothecation of crops
(2) Mortgage of lands
*For loans upto Rs 1 lac to farmers having legal ownership of agricultural lands with good track record for last 2 years, no collateral is required
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