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To avoid the inflexible tenure of the loan, the HDFC Bank has started to offer Kisan credit card to the Indian farmers and people involved in the agricultural Industry. The credit card comes with a specific limit that involves a farmer’s personal, household, unexpected, and agricultural expenses. It is one of the low-interest loans that come with a flexible tenure, allowing farmers to make the best of the loan amount without having to worry about the repayment. They are supposed to renew the credit card every year.
During the renewal, the bank reviews the farmers’ performance and extend the credit card limit. The credit card remains valid for up to 5 years, which means the farmers are supposed to use the full amount on the card within five years. Moreover, they have to repay the full amount within 12 months. The repayment period can be extended if the crops are damaged due to pest attacks or natural calamities. Basically, the farmers have to repay the loan after harvesting and selling the crops.
Depending on the productivity, cropping pattern, Income, and agricultural Land, the bank decides the best Credit Limit for each farmer. The maximum amount you can obtain from the Kisan credit card loan is up to Rs. 3 Lakh. However, you need to have a good Credit Score to qualify for this loan.
Banks will consider your credit score, Collateral, and other documents to determine your eligibility for this loan. They may also request you to submit income statements and landholding documents. HDFC Kisan credit card interest rates are not disclosed. However, you will get an interest subvention up to 9% from the government. This means the government will pay up to 9% of the interest charged on your credit card.
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The interest rate charged on the HDFC Kisan credit card can vary from farmer to farmer. The average interest is 9% p.a. Fortunately, the government offers interest subsidies. A 3% of interest subsidies is available for farmers who maintain a Good Credit score and repay their loan and utility bills on time.
A 2% of interest subvention is available for farmers that borrow a loan up to Rs. 2 Lakh.
|Loan||Minimum Interest Per Annum||Maximum Interest Per Annum|
|HDFC Kisan Credit Card||9%||16.69%|
Introduced by National Bank of Agriculture and Rural Development, the Kisan Credit Card scheme has been adopted by most of the private and public banks. Though interest charged on this loan varies by bank, the government interest subvention is available for all farmers.
The HDFC bank has started the credit scheme to provide financial support and assistance to the people working in the agricultural industry. You can visit a cooperative or regional bank for the application process. The farmers also need to complete the application form, which is available on the internet as well.
You can download the PDF of the HDFC Kisan gold card application form from the official website of the bank. Attach the required documents, and submit it to the nearest HDFC bank branch. The manager may take a few business days to review your application. If you qualify for the loan, they will accept the request and grant you the credit card. Once issued by the bank, the farmers can use the money for whatever purposes they want.
Banks and experts highly recommend farmers use this money to fund their agricultural requirements such as buying agricultural equipment, irrigation tools, machinery, construction, and other purposes. People above 70 years will also get insurance along with the credit card.
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A: The HDFC Kisan credit card has various interest rates, and yes, you can enjoy government subvention on the card. A farmer can enjoy a government subvention on the interest up to
9%. In other words, the government will pay this interest to the bank.
A: Yes, the government offers subsidies to farmers who have good credit scores and pay the bills on time. Such farmers can avail of up to
3% subsidies on the KCC purchases.
A: Yes, the interest charged by the bank varies from farmer to farmer. However, the minimum interest that the bank can charge is
9% per annum, and the maximum interest it can charge is
16.69% per annum.
A: A farmer can take a credit card loan for 5 years and repay the loan amount in 12 months. However, this is not a strict tenure as the farmers can expect an extension of the harvest is not good. You can repay the loan after harvesting and selling the crops.
A: Yes, you will receive coverage under the National Crop Insurance or NCI scheme. This will protect your crops against any loss caused dues to the attack of pests and insects. You will also receive Personal Accident cover if you are below seventy years.
A: The maximum limit is of Rs.3 lakh. This means you make withdrawals or transactions using the card up to Rs.3 lakh.
A: A farmer can make payments up to Rs. 25,000.
A: Yes, it would help if you had a good credit score. To understand your score, you should discuss it with the issuing authority.
A: No, it is unnecessary to visit a branch of the HDFC bank to apply for the card. You can visit any cooperative, regional, or nationalized bank in his bank to apply for the card.
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