Bank of Baroda Kisan Credit Card

Farmers in India mostly face financial crunch and have to take loans from the unorganized market at high rates of interest for buying farm inputs for agriculture. Kisan Credit card was introduced by the government in 1998 as a solution to such financial woes of the farmers. Bank of Baroda also offers this card just like other commercial banks and regional rural banks. Bank of Baroda Kisan credit card provides loans to the farmers for crop cultivation, farm maintenance, poultry, dairy, annual repairs, non-agricultural sector activities, repayment of loans from other lenders etc.

Features of Bank of Baroda Kisan Credit Card

Some of the salient features of the Kisan Credit card are discussed below:

• Line of credit: Bank of Baroda offers credit facilities to the farmers for crop production, farm development investments like purchase of farm machineries, tractors, transport vehicles, cattle, harvest processing equipment,personal loans for purchase of house or consumer durables (maximum ₹ 1 lakh) and loans for restitution of loans taken from non-institutional lenders. The limit for this card is five years.
• Loan Quantum: The loan amount depends on average farm income, repaying capacity of the farmer and security value.
• Card issue: Once credit card limit has been approved, Bank of Baroda Kisan Credit Cardis provided to the borrower. It is a Baroda Kisan RuPay Card which can be easily used at any ATM throughout India for cash withdrawal. Along with the card, a passbook and a cheque book are also handed to the card owner.
• Rate of interest: The interest rate varies depending on the investment credit. It will be determined on the basis of general interest rates applicable to MSME Regulatory and SME Expanded categories.
• Repayment: Based on income generation, the farmer can repay loans on quarterly/half-yearly or annual basis.
• Margin: There is no margin for production line of credit. For investment line of credit, it varies from 10% – 25% depending on the scheme.

Bank of Baroda Kisan Credit Card Eligibility

All individual agriculturists who have good track record of redemption of loan qualify for approval of a good credit limit. This deal is valid for new applicants as well. Land owners, cultivators, tenant farmers, share croppers, lease holders who have cultivated crops for a period less than five years are also eligible for the Baroda Kisan Credit Card (BKCC).

Benefits of Bank of Baroda Kisan Credit Card

Some of the advantages of a Kisan Credit Card are:

• Low interest rate compared to other sources of credit.
• No processing charge on loan sum up to ₹ 10 lakhs.
• Flexibility in loan repayment.
• Crop insurance for certain varieties of crops.
• Easy process has made it possible for illiterate farmers also to benefit from the same.

Documents Required for Bank of Baroda Kisan Credit Card:

Following documents are needed to avail Kisan Credit Card from Bank of Baroda:

• Application form with complete details and signature of the borrower
• Identity proof like Aadhaar card, PAN card, Voter ID etc.
• Address proof like Aadhaar card, driving license, Voter ID etc.
• Passport size photograph of the applicant

Bank of Baroda Kisan Credit card is easy to avail and provides timely economic support to the needy farmers at feasible interest rate and thus it turns out to be a great financial tool for the farmers.