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Fincash » Kisan Credit Card » BOI Kisan Credit Card

Bank of India Kisan Credit Card

Updated on June 13, 2024 , 21168 views

Bank of India (BOI) is willing to offer financial support to the Indian farmers by granting their credit card approval request. The scheme enables farmers, both individual and joint, to claim a low-interest loan from the Bank of India. The scheme has a flexible repayment plan. Moreover, farmers are allowed to use the credit card for all types of financial requirements - be it the agricultural needs or personal and emergency expenses.

BOI KCC

Bank of India grants a large amount of loan to the farmers if their production and financial requirements for agriculture are more than average. Farmers get a credit card along with a passbook that displays their personal information, such as name, address, contact details, ID proof, and more. The passbook also shows the card limit, repayment period, Land information, and validity period.

Bank of India KCC Interest Rate 2024 and Repayment

The BOI KCC interest rate depends on the Savings Account interest and other conditions. The farmers are supposed to repay the whole amount with interest within 12 months following the loan sanction date.

If the farmer experiences natural calamities and crop destruction due to natural disasters, then the loan tenure could be extended. The credit card will stay valid for 5 years.

Parameters Interest Rate
Interest rate during application 4 percent per annum
Interest rate upon prompt payment 3 percent per annum
Interest rate upon late payment 7 percent per annum

The bank can decide the total loan amount for a farmer based on their crop type, cultivation techniques, access to the resources, financial requirements, agricultural land, and other factors. The farmers can also use this loan for non-agricultural purposes. If the borrower maintains a good agricultural and repayment record, then the bank can increase the credit card limit for the next year.

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BOI Kisan Credit Card Application

The Kisan Credit card loan will be issued to those who are eligible for short-term agricultural loans. The applicant must own agricultural land or rent the same for cultivation. Make sure that the farmers that are otherwise eligible for other short-term agricultural loans will qualify for the BOI Kisan Credit card. Moreover, the following documents are to be submitted to the Bank of India for loan approval:

  • KYC documents
  • A promising letter stating that you will repay the loan with interest in 12 months and as soon as you harvest and sale crops
  • Charge on Land
  • Pledged Storage Receipt
  • Application form
  • Landholding documents
  • Other documents requested by the bank

The Bank of India will inspect the cultivation land, climate, soil condition, and the irrigation tools to ascertain if the farmer has adequate supplies for cultivation. They will check the storage facilities to see how you will protect the crops after the harvest season. You will have to submit your Income statement to prove that you will be able to repay the loan on time.

BOI Kisan Credit Card Security

BOI needs Collateral for security purposes from farmers who need a loan up to Rs. 50,000. The value of the agricultural land that is used as collateral must be equal to or higher than the loan amount. Additional security is needed if the value of the land is not equal to the loan amount. In terms of security, Bank of India adheres to the security guidelines mentioned by the Reserve Bank of India.

The borrower is supposed to repay the full amount with the interest by the end of the year. They can withdraw any amount (given that it does not exceed the credit card limit) from the bank anytime they want. The repayments, agricultural growth, and withdrawals are a few factors that the bank will consider to decide if the farmer deserves the credit card for the next year. They can also increase the credit card limit if the farmer manages to boost their productivity and repay the entire amount within the due period.

Features of the BOI Kisan Credit Card

Card Limit and Validity

The primary loan limit for farmers is up to Rs. 3 Lakh. However, it could be increased to Rs. 10 Lakh. The maximum Credit Limit is valid for 5 years. However, the annual renewal of the card is necessary.

Repayment

The amount you withdraw from your Kisan Credit Card account need to be paid after the harvest season. The maximum period you are allowed to keep the amount outstanding is 12 months. The bank of India can charge additional fee if the amount is not repaid by the due date.

Benefits of BOI Kisan Credit Card

  • The bank will issue a credit card and a passbook that will be used to record your name, address, credit card limit, validity period, and other details.
  • The repayment options and interest rates are quite flexible.
  • The bank can extend the loan limit considering the farmer’s potential and Credit Score.
  • The borrower is allowed to withdraw money from Kisan Credit card as many times as they want.
  • The bank of India will extend the repayment plan if the crops are damaged due to natural calamities.

Bank of India Kisan Credit Card Customer Care Number

  • Tollfree: 800 103 1906

  • Tollfree - Covid Support: 1800 220 229

  • Chargeable Number: 022 – 40919191

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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Sanjay Kumar Mishra, posted on 4 Dec 20 6:23 PM

Very concise and informative.

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