Advantages and Disadvantages of Kisan Credit Card

If you have come to know the advantages and disadvantages of Kisan Credit Card ,then you will know very well, India is an agricultural country, here farmers are considered the backbone of the country, because in this country more than 70 % Farmers are dependent on farming. That’s why the Government of India also brings many schemes for the farmers from time to time, so that the things needed by the farmers can be easily fulfilled, so that along with the farmers, the economic development of the country can accelerate. At present, one of the schemes of the Government of India, Kisan Credit Card Scheme is also being operated, under which loans are made available to farmers at normal interest rates, so that farmers can work better in agriculture or other fields. Let us know in detail in this article the benefits of Kisan Credit Card ieWhat are the advantages and disadvantages of Kisan Credit Card ?

Benefits of Kisan Credit Card

1. Under this scheme, loans are given at normal interest rates, which people between 18 and 75 years of age can avail.
2. Kisan Credit Card loan can be taken from any bank present across the country.
3. Loan ranging from Rs 50000 to Rs 300000 lakh can be obtained through Kisan Credit Card.
4. There is no processing fee of any kind for taking loan from Kisan Credit Card.
5. On applying for Kisan Credit Card loan, approval is received in 10 to 15 days.
6. Under Personal Accident Insurance, farmers are given a facility of up to Rs 50,000 for permanent disability and death and up to Rs 25,000 for other risks.
7. The credit card holder is given the benefit of crop insurance scheme against the impact of any natural disaster on the crop.
8. The beneficiaries of PM Kisan Samman Nidhi Yojana are also given the benefit of Kisan Credit Card Scheme.
9. With the help of Kisan Credit Card, loans can also be taken for farming of animal husbandry, fisheries etc.
10. Kisan credit cards can also be made under the government scheme Self-reliant India Scheme.
11. If this card has been made for a farmer and has been closed due to some reason, it can be started again very easily.
12. Through the KYC form available on the official website of PM Kisan Samman Nidhi Yojana, the limit of Kisan Credit Card can be increased and the closed card can be started.

• Read Also Minimum Salary to Have a Credit Card

Disadvantages of Kisan Credit Card

1. In order not to repay the loan taken on Kisan Credit Card at the right time, additional discount is not available, due to which 7% interest has to be paid annually.
2. Interest and principal amount have to be paid regularly every six months on the sale of the crop.
3. After taking a loan through Kisan Credit Card, there is a possibility of failure if it is not used in agriculture and used for any other personal thing, due to which there may be difficulty in repaying the loan.
4. On getting a Kisan Credit Card, its validity remains only for 5 years.
5. If the age of the applicant farmer is more than 70 years, co-applicant is required, whose age should be less than 60 years, and also the applicant should have own land.
6. Loans up to Rs.200000 lakh only are available for animal husbandry and fisheries on Kisan Credit Card.
7. A farmer can avail loan for agriculture up to a maximum of Rs.300,000 lakh only.
8. Banks are a little hesitant in giving loan on Kisan Credit Card, because the bank feels that it may be difficult to get back the loan given on this card.
9. There is no fee for making Kisan Credit Card, yet due to corruption, farmers have to pay bribe.
10. The bank charges subsidized interest on the outstanding amount as per the interest rate applicable on general agricultural loan.

FAQ

1. Interest rate on Kisan Credit Card

The interest rate on Kisan Credit Card starts from 9% per annum, on which a rebate of 2% is also available from the government. And if the loan is repaid on time and within 1 year, there is a provision of additional subsidy of 3%. Ultimately, a loan can be obtained at 4% annual interest rate.

2. Documents required for Kisan Credit Card

passport size color photo

Application form received from the bank (filled)

Aadhaar, Voter’s Driving License (one of these)

Certificate of land holding etc.

3. How much land is required for Kisan Credit Card?

According to National Agriculture and Rural Development Bank and Reserve Bank, no minimum land limit has been fixed for making Kisan Credit Card. Farmers with minimal land can also get Kisan Credit Card made.

4. For how many years is Kisan Credit Card valid?

Kisan Credit Card is valid for 05 years, but after 05 years the farmer can get it renewed again.

5. On death of the Kisan Credit Card holder

The loan is reimbursed by the insurance company in case of death of the Kisan Credit Card holder. If the farmer does not have insurance, then the heir of the land will have to pay for the loan. And if KCC is done under the government scheme, the successor is given a no-objection certificate by the bank.