Features and Benefits of SBI Kisan Credit Card | Fusion - WeRIndia

Features and Benefits of SBI Kisan Credit Card

Features and Benefits of SBI Kisan Credit Card

State Bank of India (SBI) introduced to offer loans to farmers at a low-interest rate and to support them financially.

Here are the features and benefits of SBI Kisan Credit Card:

  • All farmers including joint farmers, tenant farmers and Self Help Groups are eligible to get Kisan Credit Card (KCC). Oral tenants are also eligible.
  • Aadhaar card can be used as proof of ID and address. All other government-approved photo identity cards are valid as proof of ID and all government-approved address proof documents can be used as address proof.
  • KCC holders can get a subsidy of 2 per cent per annum in the interest rate on loan amount up to ₹3 lakhs. For prompt repayments, an additional subsidy of up to 3 per cent per annum will be provided.
  • All KCC borrowers can get ATM cum debit card.
  • The cardholders can earn interest on par with saving bank interest rate on the credit balance in KCC account.
  • Collateral security is waived off on loans up to ₹1.60 lakh.
  • The sanctioned card limit is taken into consideration to fix the collateral security requirement.
  • Notified crops or areas are covered under crop insurance for all KCC loans.
  • Repayment term will be fixed as per the harvesting and marketing cycle of crops for which the loan amount is used.
  • KCC holders are charged simple interest at the rate of 7 per cent for one year or the effective repayment date, whichever is earlier.
  • After that, interest will be compounded half-yearly.
  • For the first year, the quantum will be assessed based on the cost of cultivation and farm maintenance. Post-harvest expenses will also be considered.
  • The subsequent loan amount for the next five years will be sanctioned as per the increase in financial scale.

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