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The State Bank of India (SBI) offers a credit card to people involved in agricultural activities and farmers so that they can cater to their financial, agricultural, and emergency requirements. The SBI Kisan Credit Card is not only confined to the farmer’s agricultural needs, but also intends to help them meet their personal expenses, medical requirements, children’s marriage and educational expenses, and more.
The disbursement process is quite easy. Farmers are supposed to fill the simple documents for loan sanction. SBI will decide the short-term Credit Limit according to the productivity of the farmer and the crops they are able to grow in a specific period. The credit limit will help farmers meet their personal, household, insurance, medical, and farm-related expenses. The bank is expected to change the short-term credit limit for Kisan Credit card every year.
The total loan amount will vary according to farm production. It will be five times the total Earnings of the farmer per year. Farmers are supposed to secure the loan with Collateral, which will be the agricultural Land. The amount of the loan will be half the total value of the agricultural land. The maximum amount will not exceed Rs. 10 Lakh.
In order to get their credit card request approved, farmers have to submit the land records, agricultural Income statement, identification and address proof, and other required documents. If the loan amount is below than or equal to Rs. 1 Lakh, then the State Bank of India will demand collateral. If the amount is above Rs. 1 Lakh, the agricultural land and other assets will be used as a debt security.
SBI KCC interest rates for borrowers having a total credit limit under Rs. 25 Lakh -
|Loan Amount||Interest Rate (Per Annum)|
|Up to Rs. 3 Lakh||Base rate plus 2 percent = 11.30 percent|
|Rs. 3 Lakh to Rs. 5 Lakh||Base rate plus 3 percent = 12.30 percent|
|Rs. 5 Lakh to Rs. 25 Lakh||Base rate plus 4 percent = 13.30 percent|
The farmers get an interest subvention up to 2% a year from the government. If they repay the loan before the due date, then 1% extra subvention is granted to the borrower. The bank charges 7% interest for one-year on the loan amount.
The SBI KCC interest rate (per annum) for borrowers having a total credit limit between Rs. 25 Lakhs to Rs. 100 Crores-
|3 Year Tenure||Tenure Between 3-5 Years|
|11.55 percent||12.05 percent|
|12.05 percent||12.55 percent|
|12.30 percent||12.80 percent|
|12.80 percent||13.30 percent|
|13.30 percent||12.80 percent|
|15.80 percent||16.30 percent|
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The credit under the KCC program is in the form of revolving credit and the total balance in the account.
Farmers can apply for the KCC by SBI in the form of a single applicant or with co-borrowers who might be owner cultivators.
Some of the important benefits offered by the SBI KCC are:
SBI has taken a step to support the Indian farmers by sanctioning their loan application with a low-interest rate and flexible tenure. Individual, tenant farmers, landowners, and sharecroppers are eligible for the SBI Kisan credit card.
For more information, you can Call 24x7 helpline number of SBI at
1800 -11 -2211 (toll free).
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