New Delhi, Business Desk. The government’s effort through the KCC scheme is to save farmers from the clutches of moneylenders. Under this scheme, on the condition of timely payment, the farmers get a loan of less than four percent. Prime Minister Narendra Modi has started giving Kisan Credit Cards to all the beneficiaries of PM-Kisan Yojana this year. KCC has been given to lakhs of beneficiaries of PM Kisan scheme under this scheme. The country’s largest bank SBI also provides Kisan Credit Card facility to farmers. KCC provides loans to farmers on easy terms.
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- No collateral is required for a loan of Rs 1.60 lakh.
- One year or till the date of payment (whichever is earlier), you have to pay the loan with a simple interest of seven percent.
- Loans up to three lakh rupees get a discount on interest at the rate of 2%.
- There is an additional 3% discount on interest on timely payment.
- You will have to pay interest at the card rate for not paying due due.
- All types of KCC loans provide agricultural insurance for the notified crop and area.
- The remaining amount in KCC gets interest at the savings bank rate.
- SBI offers ATM cum debit cards to all KCC holders at no charge.
Who can take advantage
According to the information given on the SBI website, all types of farmers can avail this scheme. These include individual landowners as well as joint cultivators. Farmers on rent can also get the benefit of this scheme. Self-help groups can also receive KCC.
Which documents will be needed
According to SBI, you need proof of identity and address proof along with the correctly filled application form. For this, you can use any documents like Voter ID card or PAN card or passport or Aadhaar card or driving license.