Know, for what purposes you will get cheap loan on KCC and how to apply
In order to provide cheap bank loans or loans to the farmers, farmers are being given Kisan Credit Cards by the government. With the help of this, farmers can take loans from cooperative banks at low interest rates.
Not only this, now animal husbandry farmers and fish farmers are also being given the benefit of KCC. The biggest advantage of taking a loan or loan from KCC is that it gives a cheap loan and it is also easy to repay. Earlier, KCC loans were given to farmers to buy inputs for crop production.
But now its scope has been extended. Now the farmer can take loan from KCC for other works besides farming. Today we will tell you through TractorJunction that for which works one can take loan or loan from KCC.
Agriculture Minister informed about the changes made in KCC
Now farmers can take loan on KCC for other works besides crop loan. In response to the questions asked by Sunil Kumar Pintu in Lok Sabha, the Union Minister of Agriculture and Farmers Welfare gave information about the changes made in the Kisan Credit Scheme.
The Union Agriculture Minister, Shri Narendra Singh Tomar told in the Lok Sabha that the Reserve Bank of India has issued a circular on July 4, 2018.
In which the objective of this scheme is to facilitate the joint liability of farmers including farmers, individual / joint borrowers who are farmers themselves, tenant farmers, oral lessees and sharecroppers,
self-help groups or tenant farmers, sharecroppers etc. Flexible and simple process for their farming and other needs. To provide adequate time bound support from the banking system under a single window.
Farmers can take KCC loan for these works
Through Kisan Credit Card, farmers can take loans to fulfill their many requirements. The works for which loan is available on KCC are as follows-
- To meet short term credit requirements for cultivation of crops
- post harvest expenses
- produce marketing loan
- Consumption Requirements of Farmer Family
- Working capital for maintenance of agricultural assets and agricultural activities
- Also the need for investment credit for agriculture and allied activities.
Fish farmers and livestock owners can also take advantage of KCC
With effect from February 4, 2019, the Kisan Credit Card has also been extended to provide loans to farmers engaged in animal husbandry and fisheries to meet their working capital requirements.
All charges including processing fee, inspection, book folio fee, service fee have been waived for loans up to Rs 3 lakh. The collateral free loan limit for short term agriculture loans has been increased from Rs 1 lakh to Rs 1.60 lakh by KCC.
How much interest is charged on taking loan / loan from Kisan Credit Card
Interest on Kisan Credit Card The Government of India is also giving the benefit of interest subvention scheme to the farmers with a view to providing short term agricultural loans at concessional interest rates.
Under this scheme, short term crop loan up to Rs.3 lakh is available through KCC at a benchmark rate of 9 per cent for farmers engaged in agriculture and allied activities.
Government of India provides 2 percent interest subvention on the benchmark rate. An additional 3 per cent rebate is also given to farmers who make early and timely repayment of loans, thus reducing the effective interest rate to 4 per cent per annum.
No fee will have to be paid for getting KCC made
Getting Kisan Credit Card (KCC) has become easier than ever. On the instructions of the Central Government, the Indian Bankers Association has abolished the processing fee, inspection, ledger folio, renewal fee for preparation of KCC and all other service charges for issuance of new KCC. In this way, farmers will not have to pay any kind of fee for getting KCC made.
How much loan can the fisherman and animal husbandry get from KCC
Farmers can get a loan of up to Rs 3 lakh for agriculture related works. Whereas for fishermen and livestock farmers, loans up to Rs 2 lakh can be taken through KCC.
Farmers can get KCC made from any bank
According to the officials of the Ministry of Agriculture, farmers, livestock owners or fish farmers can get their KCC made from any bank, for this only 3 documents will be taken. The main document in this is whether the person who is applying for KCC is actually a farmer or not. For this you have to provide proof.
KCC will be made in 15 days
The Central Government has given strict instructions to the banks that KCC should be made within two weeks by the 15th day of the application. However, from time to time, campaigns are also run at the village level by the government to get KCC made. The main objective of KCC facility is to provide easy and low interest loan to the farmers.
What documents will be required to get KCC made?
The documents required by the farmers to get KCC made are mainly agricultural papers, residence certificate and an affidavit which states that you do not have any loan outstanding in any other bank.
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