Kisan Credit Card Interest Rate

The interest rate for Kisan Credit Card vary from bank to bank. However, the interest rate charged for Kisan Credit Card by top banks are mentioned in the table below:

There are few factors that cardholders will have to bear in mind when it comes to Kisan Credit Card interest rate. Below mentioned are the details regarding the same:

• Cardholders can avail 2% interest subvention on a loan amount of up to Rs. 2 lakh
• Additional interest subvention of 3% is provided to those cardholders who are prompt in repaying their bills
• A simple interest rate is charged as long as the user is prompt in repaying the credit card bill

Failure of regular payment will result in the application of compound interest on the credit card bills. This will result in more interest payout on the amount borrowed.

Kisan Credit Card is a great scheme for small and marginal farmers. It provides many privileges, such as low interest rate, security, insurance coverage and much more to its users. Given below are the key highlights of the Kisan Credit Card Scheme in India:

Interest Rate: Some of the banks offer Kisan Credit Card with a low-interest rate as compared to other credit cards.

Security: No collateral/ security is required for the loan amount of up to Rs. 1.60 lakh.

Insurance: Following coverage is usually provided via the PM Kisan Samman Nidhi, which KCC is a part of:

• Up to Rs. 50,000 against permanent disability and death
• Up to Rs. 25,000 against other risks

Tenure: Repayment period is decided on the basis of the harvesting and marketing period of the crop for which the loan amount was taken.

Loan Amount: Loan amount of up to Rs. 3 lakh can be taken by the cardholder.

Savings: Cardholders can use the Kisan Credit Card account as a savings account and deposit their money in it. This way they can avail a higher rate of interest than a normal savings account.

Related read: Kisan Credit Card (KCC) Loan Scheme in India

Kisan Credit Card can be availed by anyone engaged in agriculture or related activities and even certain non-farming activities. Other requirements like age (18-75 years), co-borrower (in case of senior citizens), etc., must also be met.

Besides this, banks will have certain requirements that the applicant must meet. These requirements will be shared with the customers when they show interest in applying for the credit card.

Documents Required for Kisan Credit Card

Banks will require certain documents to complete their Know Your Customer (KYC) formalities. A list of eligible documents is given below.

People, who want to apply for Kisan Credit Card, can apply via both online as well as offline modes. To apply offline, you have to visit the nearest bank’s branch. Whereas, you can visit the official website of the preferred bank to apply online. Below mentioned are the details regarding the same:

Online: Follow the below-mentioned steps to apply online for this scheme:

1. Visit the preferred bank’s website and visit their Kisan Credit Card section
2. Download, print and fill out the application form
3. Submit the application form and necessary documents at the nearest bank’s branch
4. The loan officer will share the necessary information with the applicant
5. Once the loan amount is sanctioned the card will be dispatched
6. Customers can start using their credit cards once they receive the KCC

Offline: To apply offline, you can visit a bank of your choice and get in touch with a bank official. The official will help the applicant in filling out the form. Afterward, the loan officer will share the necessary details and process the application.

The Kisan Credit Card Scheme was launched by NABARD (National Bank for Agriculture and Rural Development) and is being followed by both public and private sector banks. Some of the leading banks that offer KCC are as follows:

State Bank of India: It is one of the largest issuers of Kisan Credit Card. The interest charged on SBI Kisan Credit Card is 7% p.a. on loan amount less than Rs. 3 lakh.

Punjab National Bank: It is a major public sector bank & therefore its Kisan Credit Card is also quite in demand. The KCC is easy to apply for and users can expect speedy disbursal post-processing.

HDFC Bank: This is a major private bank and you can apply for HDFC Bank Kisan Credit Card by visiting the nearest branch. The users will get a checkbook with a credit limit of up to Rs. 25,000.

Axis Bank: Axis Bank offers a competitive interest rate on Kisan Credit Card. Moreover, they provide interest subvention in line with the government’s schemes.

Other Banks offering Kisan Credit Card:

Apart from the above-mentioned banks, there are several other banks that offer Kisan Credit Card. You can check their details by clicking on the below links:

Q. Who can apply for Kisan Credit Card?

A. Farmers, who meet the below requirements, can apply for the Kisan Credit Card:

• Individuals/ joint cultivators, owners
• Tenant farmers, oral lessees, and sharecroppers, etc.
• SHGs or joint liability groups including tenant farmers

Q. Do I have to apply for the insurance separately or does it come with Kisan Credit Card?

A. All customers will get insurance coverage once their credit card application is accepted. The cardholders don’t have to apply separately for the insurance coverage.

Q. For what activities can I use the Kisan Credit Card loan?

A. You can use a KCC loan to cover the expenses related to crop production, working capital requirements, such as maintenance of farming assets or other allied activities like dairy animals, etc.

Q. What is the tenure of the loan that can be taken out via Kisan Credit Card?

A. The tenure offered on loans generally varies from bank to bank. However, the maximum tenure for the Kisan Credit Card loan can be of 5 years.

Q. What security/ collateral will the bank demand to sanction the loan amount?

A. Banks won’t demand security or collateral as long as the loan amount is less than Rs. 1.60 lakh. Beyond that, banks can ask for security that it deems fit. Collateral can be in the form of handing over the crops for which the loan was taken out or other assets like tractors, trolleys and so on.

Q. How can I apply for Kisan Credit Card?

A. You can apply offline as well as online for this credit card. To apply online, you can visit the official website of any of the banks that offer Kisan Credit Card. However, you have to visit the nearest bank branch and fill out the application form to apply offline.