Kisan Credit Card: KCC Holders Can Avail Loan up to 5 Lakh amid Crisis with Cheapest Interest Rate; Details

The government has been coming up with new schemes to help farmers across the country amid this crisis and nationwide lockdown. Kisan Credit Card is providing big relief to the needy farmers in this lockdown period where they can avail loan up to Rs 1 lakh 60 thousand without guarantee in return. At the same time, farmers can take an agriculture loan of up to Rs 5 lakh under KCC in 3 years with a minimum interest rate of 4% per annum. Moreover, the date of repayment of  KCC  Agri loan has extended to 31 August, giving a huge relief to 7 crore farmers.

RBI has given its exemption. However, the notification has not yet reached the banks. Moreover, many farmers are not aware of the recent update of KCC where the deadline is extended up to 31st May and only a few days left to fulfil that. 

How farmers can be benefitted from this?

In fact, due to the relief given by the government, even after 6 months, farmers can pay the interest of KCC card only at the old rate of 4 per cent per year. This decision has been taken to give relief to the farmers in Coronavirus Lockdown.

Scheme to give credit cards to 2.5 crore farmers

Amid the 3.0 lockdown, the government has decided to give credit cards to 2.5 crore farmers who are linked with PM Kisan Yojana. The interest rate for the credit card loan will be very low. The government is going to distribute a loan of Rs 2 lakh crore to the farmers in this financial year. Finance Minister Nirmala Sitharaman announced it under economic relief package.

Kisan Credit Card Scheme is helping farmers to a big extent 

The Kisan Credit Card can actually help you in meeting some of your essential household expenses in the times of need. However, the KCC scheme which provides loans to farmers for small loans is mainly to meet their financial needs related to crops. But, the government has asked farmers to use some part of it to meet domestic needs.

Can You Use Kisan Credit Card for Domestic Needs?

Viewing the current crisis scenario, the government has allowed farmers to use 10% of the loan in domestic needs. Farmers can use 10% of the short-term limit under the KCC scheme for domestic use. The Reserve Bank of India has put information in this regard on its website under its Financial Education (for farmers) section. In fact, the Reserve Bank of India (RBI) has given information that now farmers all over the country can use their credit cards to meet the needs of the household.