Kisan Credit Card: It is issued to the beneficiaries of Pradhan Mantri Kisan Yojana where farmers can get easy loan upto 1.60 lakh with zero guarantee. Farmers can easily apply for this card by visiting the nearest bank. Apart from the government banks, private banks can also issue this Important card to farmers.
While making the card, the farmer has to give many information including outstanding loan in any other bank. Farmers can avail loans at a cheaper rate through Kisan Credit Card.
Under this, the government provides loans up to Rs 1.60 lakh to farmers without any guarantee. Through this, a short-term loan up to Rs 3 lakh can be taken in 5 years. The government provides unsecured loans up to Rs 3 lakh to some farmers which includes dairy farmers associated with milk unions. Till now, crores of farmers have taken very cheap loans through this.
The loan which can be taken for the crop has an interest rate of 7 percent while the central government gives a subsidy of 3 per cent to farmers who pay on time. You do not have to pay interest due from the card rate for not paying within due date. In the event of not being able to pay till due date, the interest is reduced in sixth month.
You will get this benefit if you pay it on time:
If you pay it on time, you can get a discount of 3 percent on interest rate and along with that 2 percent subsidy is available. On the other hand, farmers have to pay 5% interest loan if they are not able to pay it on time.
