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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.
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.
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.
|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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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:
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 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.
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.
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.
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Very concise and informative.