6. KISAN CREDIT CARD

Purpose

• To meet the short term credit requirement for cultivation of crops, Consumption requirements.
• Working capital for maintenance of farm assets and allied activities like dairy, fishery etc.
• Investment credit requirement for agriculture and allied activities.

Objecct

KCC aims at adequate and timely support from the Bank to meet their requirements for cultivation of crops, maintenance of the animals, to meet their contingent needs in a flexible and cost effective manner

Salient Features

• Loan limit is fixed on the basis of area under cultivation, crop cultivated and scale of finance fixed by the District Authorities for the crop + consumption component 10% + 20% for maintenance of farm assets etc. This is the Maximum Drawing limit for a year.
• The loan is sanctioned for 5 years. For every successive year the maximum Drawing Limit of the year will be-stepped up @ 10% and the amount so arrived for the fifth year is the Max. Permissible Limit.
• The limit is sanctioned as running cash credit permitting the farmers any number of credits and drawals within the sanctioned limit.
• Withdrawal through ATM Cards, Cheques etc.
• Running account for 60 months subject to annual review. No drawal in the account. Should be outstanding for more than 12 months.
• Personal Insurance cover for life up to Rs.50000/- and permanent disability cover up to Rs.25000/- is available

Security

a)upto Rs. 1 lac (maximum Permissible limit)- Hypothecation of crops.
a)Above Rs. 1 lac – mortgage of the property

Interest

1. For loan upto Rs. 3 lacs: Interest subvention from Government of India is available at 7% interest for the crop period(maximum 12 months). If repaid within the due date 3% interest subvention is also available for prompt repayment. So the effective interest rate is 4% only if repaid within due date (maximum 12 months).
2. For loan above 3 lacs:Fixed by the bank time to time