Kisan Credit Card: Govt Releases New Interest Rate on KCC Loan; Know How much Interest will be Charged Now

Kisan Credit Card New Interest Rate: The Kisan Credit Card scheme was launched in 1998 with the objective of providing short-term formal loans to farmers. Amid the corona crisis, government has announced new interest rate on Kisan Credit Card.

Prime Minister Narendra Modi has recently launched a saturation campaign for distribution of Kisan Credit Card Yojana to all beneficiaries under PM Kisan Yojana in Chitrakoot, Uttar Pradesh. Under this initiative, KCC (KCC Scheme) has been provided to more than 25 lakh beneficiaries of PM Kisan across the country and more than 2,000 bank branches in rural areas have been tasked with providing KCC to farmers.

KCC Loan Interest Rate:

For loans under the KCC scheme, the farmer has to pay simple interest at the rate of 7 percent per annum for one year per year or till the due date, whichever is earlier. In the event of non-repayment within the due dates, interest is charged on the Kisan Credit Card rate. However, if they fail to pay within the due date, the interest will be reduced half-yearly. However, the crops for which loans have been given, the repayment period can be fixed according to the anticipated harvesting and marketing period for them.

Who is Eligible for Kisan Credit Card?

All Farmers - Individuals / Joint Farmers Tenant farmers, oral cum and share crops etc. SHG or joint liability group consisting of ten farmers.

Documents required to apply for Kisan Credit Card:

Duly filled application form! Identity proof- Voter ID card / PAN card / Passport / Aadhaar card / Driving license etc.! Address proof: Voter ID / Passport / Aadhaar Card / Driving License etc.

Who is eligible for this loan?

According to the official website of SBI- www.sbi.co.in, all the farmers who are owner-cultivators, tenant farmers, oral workers, sharecroppers etc, single holding groups (SGH) or joint farmer groups, tenants including farmers are eligible for Kisan Credit Card loan under Kisan Credit Card Yojana.

How to apply for KCC loan?

Applicants can contact the nearest branches of bank or agriculture department. Or even they can talk to marketing executives visiting the village. All they need to do is fill out an application form with proof of their identity and address. Apart from this, farmers can also apply online for this Kisan Credit Card Yojana. To apply online, farmers have to visit the official website of Kisan Credit Card. On the official website of the scheme, farmers will be shown the option to apply online.