Kisan Credit Card: Eligibility and Credit Limits The Kisan Credit Card is a special government-backed loan scheme designed to provide financial assistanc...
The Kisan Credit Card is a special government-backed loan scheme designed to provide financial assistance to farmers and agricultural entrepreneurs. It offers a range of benefits, including subsidized interest rates, loan amounts, and repayment flexibility.
Eligibility:
Farmers and agricultural entrepreneurs with a minimum annual income of INR 6,000/- can apply for a Kisan Credit Card.
Individuals who have completed 5+ years of schooling and possess a valid bank account are also eligible.
Credit Limits:
The credit limit for a Kisan Credit Card can range from INR 50,000/- to INR 1,00,000/- depending on the applicant's income and agricultural activity.
The minimum credit limit for women is INR 30,000/-.
Credit limits are typically for a period of 5-7 years, with the option for renewal at the end of the term.
Benefits:
Interest Subsidy: The interest rate on a Kisan Credit Card is significantly lower than the market rate.
Loan Period: The loan repayment period can be customized according to the applicant's income and agricultural activities.
Repayment Flexibility: Kisan Credit Cards offer flexible repayment options, including monthly installments and crop-based payments.
Collateral: Some lenders may ask for collateral, such as land records or agricultural equipment, to secure the loan.
Example:
A farmer with a land area of 20 hectares and annual income of INR 80,000/- can apply for a Kisan Credit Card with a credit limit of INR 70,000/- with a repayment period of 5 years