Kisan Credit Card: KCC Holders Must Deposit Money before 31st August to Avail These Benefits

In this corona crisis, farmers are the one who are suffering the most due to the lockdown imposed by government. Although, the government has initiated 'unlocked' in many places, but this hardly solves all the problems that the farmers have been facing since last four months.

As per recent reports, the farmers who are taking loans through Kisan Credit Card have to return the loan amount before 31 August. Otherwise, they will not be able to avail the 3 percent interest rebate on loan, says officials.

Normally, loans taken by Kisan Credit Card (KCC) have to be returned by 31 March, but this time due to the lockdown, the government extended this deadline to 31 May.

Farmers Need to Pay 7% Interest after 31st August

The farmers who will return the amount by 31 August, need to pay only 4 percent interest, says reports. After this date, the loan repaying farmers will have to pay 7 percent interest. The Modi government took this decision to give relief to the farmers in the cabinet meeting amid the corona lockdown.

Agriculture Minister Narendra Singh Tomar said that the government took the decision in view of the farmers' troubles amid the Corona lockdown. The deadline was extended to 31 August in view of the current scenario.

Low interest rate on Kisan Credit Card:

Farmers get 9% interest on agricultural work, but the government provides a subsidy of 2% for short-term loans up to Rs 3 lakh. Because of this, farmers get this loan at 7 percent interest rate. Moreover, if they repay the loan on time, then they are given an additional rebate of 3 percent.

In this way, the farmers who repay the loan on time will be charged only 4 percent interest rate. Under normal circumstances, the deadline for repaying this amount is 31 March which has now extended to 31st August. After this, 7 percent interest has to be paid on repaying the loan.