The Kisan Credit Card Scheme is operated by the government to protect farmers from the vicious cycle of debt and interest of moneylenders. Under this scheme any farmer can easily take a loan from banks for sowing crops and repay it within a fixed period. The government has now given the facility to provide loans up to Rs 1.6 lakh without any guarantee to the farmers under this scheme. The rate of interest under this scheme can be less than 2 percent. Let us know, the answers to all the important questions related to the Kisan Credit Scheme…
Loan will be available on interest up to 2 percent: Loans up to Rs 3 lakh can be availed from the Kisan Credit Card Scheme. Apart from this, no guarantee is required for loans up to Rs 1.6 lakh. The facility of crop insurance scheme is also provided to farmers who take loans through Kisan Credit Cards. Not only this, insurance coverage is also available, such as Rs 50,000 will be helped in case of permanent disability or death. Apart from this, Rs 25,000 will be helped in any other crisis.
How is the repair period decided? The repayment period of loan taken on Kisan Credit Card is from the sowing of the crop to the market. Some crops have more time, some work hours are shorter. In such a situation, the loan period may be more or less in terms of crop.
What is the rule of interest: Under this scheme, the farmer can take a loan of up to Rs 3 lakh, in which no guarantee is required on the loan up to Rs 1.60 lakh. If a farmer repays the loan amount at a fixed time, then the normal rate of interest is charged, but after the period is over, the interest is charged at the compound rate.
How the bank decides the loan amount: The loan amount to the farmer is decided by the loan officer. For the loan, the area of the farmer's land, the expenses required for farming and consumption are taken care of.