Central Bank of India Kisan Credit Card

• The card is offered to meet the very short-term credit requirement of farmers.
• It is offered to cover the pre-harvesting and post-harvesting short-term credit requirements.
• This type of loan facility is also offered to cover for the capital requirements required for maintaining of assets like farm equipment, etc.
• It also covers agri-allied activities like poultry, dairy, fisheries etc.

Please Note: Central Bank of India is not a Paisabazaar partner. Offers would be from partner Banks/NBFCs only. 

Given below is a representation of all the features, benefits and rate of Interest charges of the Central Bank of India’s Cent Kisan Credit Card.

Purpose- The loan can be availed to meet:

• Short term credit needs of farmers required for crop cultivation.
• Post-harvest costs
• Expenses required for produce marketing.
• Consumption requirements.
• Capital needs required for maintenance of farm assets and equipment and to cover for agriculture allied activities namely dairy, poultry, fisheries etc.

Nature of Facility- The nature of this Cent Kisan Credit Card facility is short-term credit that is revolving in nature.

Credit Limit- The credit limit offered under this facility changes every year as under:

• For the 1^st year, the credit limit is fixed on Scale of financing for the crop + 10% of the limit that has been allocated towards expenses post-harvest + 20% of the limit for repairs and maintenance + Insurance for the crop + Personal Accidental Insurance + any insurance for the asset.
• For all subsequent years: the total credit limit will be offered in preceding year + 10% of cost escalation.

Security- The credit security is offered in two ways:

• Primary Security by way of Hypothecation on the crops created and all the assets that are purchased out of bank’s finance.
• Collateral Security is required for credit facility availed above ₹ 1 Lakh. For credit facility below ₹ 1 Lakh, no collateral security is required.

Rate of Interest- Given below are the rates of interest on Central Bank of India Kisan Credit Card:

• For credit facility up to ₹ 50,000 – MCLR plus 0.50%
• For credit facilities above ₹ 50,000 but less than ₹ 5 Lakhs – MCLR plus 1.00%
• For credit facilities above ₹ 5.00 Lakhs but less than ₹ 25.00 Lakhs – MCLR plus 1.50%
• Credit facilities above ₹ 25.00 Lakhs – MCLR plus 2.00%

Repayment- The repayment period is decided as per the marketing as well as harvesting of the crop. The total repayment limit of the credit facility will be available for a period of 5 years, but subject to yearly review.

This credit card facility can be availed by all Indian Farmers who are either – Individual Farmers or Co-Borrowers. Owners of farmland, Self-cultivators, tenant farmers, oral lessees, sharecroppers, self-help groups or joint liability groups- any farmer falling any of these categories can apply for Central Bank of India Kisan Credit Card.