What is the initial tenure of KCC?

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What is the initial tenure of KCC?

5 years
Kisan Credit Card was introduced in 1998 to provide quick credit to farmers for purchasing seeds, fertilizers, agricultural machinery, etc. The initial tenure of KCC is 5 years.

What is KCC renewal?

KCC comes up for renewal in the June-July period every year. “All KCCs are supposed to liquidate their entire outstanding at the year-end, and fresh loans are given for the same limit. For MSME industry cash credit limit is rolled over for the next year if they serve only the interest.

What if KCC loan holder dies?

In case of death, the cardholder’s family gets Rs 50,000. In case of loss of both limb or both eye or one limb and one eye, the cardholder gets Rs. 50,000.

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What is the maximum loan limit under the KCC scheme?

The Government of India (GoI) gives up to Rs 1.6 lakh KCC loan without any collateral or guarantee to the small farmers who hold KCC. As per the tax and investment experts, farmers can take loans up to Rs 5 lakh KCC loan in 3 years.

What is KCC interest rate?

4\%
The interest rate on the KCC differs from one bank to other along with its credit limit. However, the interest rate of KCC can be as low as 2\% and averaging at 4\%.

How is KCC limit fixed?

The credit limit under the Kisan Credit Card may be fixed as under : 5.1 All farmers other than marginal farmers 1 : 5.1. The long term loan limit should be based on the proposed investment(s) during the five year period and the bank’s perception on the repaying capacity of the farmer.

What is MC revised KCC?

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The scheme aims at providing adequate and timely cred it for the comprehensive credit requirements of farmers under single window for their cultivation and other needs as indicated below: To meet the short term credit requirements for cultivation of crops. Consumption requirements of farmer household.

What are the benefits of Kisan Card?

Features and Benefits

  • Kisan Card (Green Card) aims at providing adequate and timely credit to farmers to meet cultivation needs.
  • The product gives the farmer the flexibility to choose between cash credit and term loans with friendly repayment terms.
  • Attractive rates of interest available.

WHO launched Kisan card?

In a bid to provide term loan for agricultural needs of the farmers, Indian banks introduced Kisan Credit Card (KCC) scheme in August 1998. The model of KCC scheme was prepared by NABARD (National Bank for Agriculture and Rural Development) that met the recommendations of RV Gupta Committee.

Is guarantor required for KCC loan?

Now they can get loan worth Rs. 1.60 lakh without any guarantee on Kisan Credit Card (KCC) for cultivation of various crops. It is important to mention that earlier, farmers used to get loan of just Rs. Small and marginal farmers of India are provided crop loans through Kisan Credit Card at a low interest rate.

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How do I know my KCC limit?

How do I check my KCC account balance? To check the balance in your Kisan Credit Card account, you will have to contact the customer service centre of the public sector bank that has provided you with the Kisan Credit Card. Alternatively, you can visit the bank’s branch to check the balance in your account.