Check Out the Kisan Credit Card Offers of PSU Banks

Banks have joined the initiative of helping farmers raise their production by providing them the required finance at the right time. As part of the initiative, banks are offering Kisan Credit Card (KCC) to farmers to ensure there’s no interruption in their farm production. With seamless credit and hassle-free approval, KCC is becoming a big name in the farm lending space. Although it’s offered by most banks, it’s the public sector banks where most farmers apply for a Kisan Credit Card. In this article, you will get to know the Kisan Credit Card offers of PSU banks.

SBI Kisan Credit Card

State Bank of India (SBI), the country’s largest lender, offers Kisan Credit Card to all farmers including individuals or joint cultivator owners. The list of beneficiaries also includes the tenant farmers, oral lessees, sharecroppers, self-help or joint liability groups. The loan for the first year will be assessed based on the cultivation cost, as well as the farm maintenance and post-harvest expenses. The loan for the subsequent five years is based on the increase in the scale of finance.

The bank would charge a simple interest of 7% per annum for one year or up to the date of repayment, whichever comes earlier. If you make a payment after the due date, the bank will charge interest on a compounding basis. You can get KCC loan interest subvention at 2% for loan amount up to ₹3 lakhs. Further, there’s no collateral security for loan up to ₹1 lakh. The bank can fix the repayment period in accordance with the anticipated harvesting and marketing period of the crops.

PNB Kisan Credit Card

Punjab National Bank (PNB) offers KCC limit based on your farm and non-farm income, the size of land holding, price realization, acreage and average yield of crops grown, etc. Loan up to ₹2 lakhs are financed fully. Limits above ₹2 lakhs to ₹3 lakhs are financed 90%, making you pay the remaining 10% as margin.

Canara Bank Kisan Credit Card

Canara Bank Kisan Credit Card is offered to farmers so that they can raise their farm production without any worry. The loan can also be availed for post-harvest expenses, consumption needs of farmer household. It can also be used as working capital to maintain farm assets, agriculture-related activities such as inland fishery, dairy animals, etc. The loan can be given to all farmers such as individuals or joint borrowers, tenant farmers, sharecroppers, oral lessees, self-help or joint liability groups. The bank does not charge any margin for loan limit up to ₹1 lakh. Loan above ₹1 lakh come with a margin requirement of 15%-25% of the estimated expenditure. Loan up to ₹1.5 lakh require hypothecation of assets or crops created out of the finance provided. Loan above ₹1.5 lakh would require a mortgage of landed properties besides the hypothecation of assets or crops created out of the finance extended.

Bank of Baroda Kisan Credit Card

Bank of Baroda (BoB) also offers Kisan Credit Card at attractive terms. You can avail the KCC loan at BoB to fund your post-harvest expenses, maintenance of farm assets and agricultural-related activities, the purchase of farm equipment or machinery, as well as vehicles for farm transportation. While the minimum loan offered is ₹5,000, there’s no limit as far as the maximum loan is concerned. Farmers may need to pay a margin ranging from 10%-25%.