To help in meeting the farmer’s financial needs State Bank Of India provides a Kisan credit card. Using the SBI Kisan card the user can borrow a loan amount against the harvested crop. The user can borrow a loan amount maximum up to INR 1.60 lakh without providing any collateral using the Kisan credit card. SBI offers a term loan benefit to the user using which they can manage their expenses related to their agriculture or financial needs. To know more about the SBI Kisan credit card read the given article.
Who is eligible for SBI Kisan Credit Card?
This card is only for the farmers so that they can meet their daily expenses by managing their agriculture costs. All the farmers, sharecroppers, Self-Help Groups (SHGs), Joint liability groups and tenant farmers can apply for the Kisan credit card. The applicant just needs to submit the documents to the bank such as ID proof and address proof like Aadhar Card, PAN Card, Electricity Bill, etc. Using the card one can borrow a maximum loan amount up to INR 25 lakh. But, the user has to provide a collateral for the loan security such as the land or harvested crops. You also get insurance with your Kisan credit card under the National Agriculture Insurance scheme so that the loss will be compensated.
How the interest rates are charged on your SBI Kisan credit card?
State Bank Of India charges an interest rate on your borrowed loan amount depending on the bank base lending rate. The base rate of the SBI is currently 8.95% and if you borrow a loan amount above 3 lakh then a 2% charge would be applied along with it. The Kisan credit card loan tenure for the first loan is maximum up to 1 year and after that it can be increased up to 5 years. You can make payment for your loan amount using the auto-debit method so that the amount would be automatically debited from your savings account. And, the borrower will be charged with a 3% interest rate per annum if prepay the loan amount during the loan tenure. The loan can be paid in the crop harvested season in January or July depending on the type of crops.
Get Kisan credit card from SBI through the online and offline services
The customer can go to their nearest SBI branch and apply for the Kisan credit card by filling up the card form. Otherwise, you can do the same procedure using SBI internet banking services. Just visit the SBI official website and select the agricultural and rural banking section then from product click on the Kisan credit card. After that you just have to fill in some basic details and your relationship with the bank. If you are exiting SBI bank customer then you can easily apply for the SBI KCC loan using the mobile banking app. Now, problems are no more bigger for the farmers when they have the Kisan credit card they can solve any financial issues without any hassle.