A Take on SBI KCC Loan and its Benefits
Farmers increasingly rely on the capital financed by banks to raise the level of their income. Due to inadequate production, farmers are found short of cash to spend on the farm machineries, which ultimately results in decreasing their income and posing question marks over their survival in this inflationary world. However, with Kisan Credit Card (KCC), loans are financed to farmers at subsidized interest rates to ensure the production remains higher at the expense of less cost. There are several banks such as SBI that offers KCC Loan. The bank offers a loan at competitive interest rates to ensure farmers don’t get pinched hard while servicing the debt. With budget-friendly rates, farmers are able to produce large quantities of crops to sell them in the market to generate good revenue. Let’s check out the offers of SBI KCC Loan in detail.
SBI Kisan Credit Card Loan SBI KCC Loan comes with the following benefits. ● The credit balances of KCC account are levied with the interest rate of a savings account ● Enjoy 2% annual interest subvention on loans of up to ₹3 lakhs ● Get additional interest subvention at 3% per annum on prompt repayments ● Notified crops or notified areas covered under crop insurance for KCC loans ● Issuance of ATM-cum debit card at free of cost
Who is Eligible for SBI KCC Loan? One can get the loan if they are any of the following. ● Farmers or joint cultivator owners ● Tenant farmers, sharecroppers and oral lessees ● Self-help Groups (SHGs) or Joint Liability Groups including tenant farmers
How Much KCC Loan Can SBI Extend? The quantum of loan to be financed for the first year would depend on the cultivation cost, expenses post harvesting as well as the cost of maintenance. Loans for the subsequent five years would be provided in line with the increase in the scale of finance. Consequently, there’s no need to submit collateral for loans up to ₹1 lakh. Loan amount beyond ₹1 lakh, the bank would decide upon the collateral it requires to secure the credit.
KCC Loan Interest Rate The best part is that a simple interest rate of 7% per annum is charged for one year or up to the date of repayment, whichever is earlier. The interest is applied at the card rate in case of non-repayment within the due dates. However, paying after the due date would lead to interest getting charged on a compounded basis.
How Much Time Would SBI Provide to Repay the KCC Loan? SBI would decide the repayment period based on the anticipated harvesting and marketing period for crops. What are the Documents Needed to Procure SBI KCC Loan? SBI seeks the following documents before it grants the loan. Check out below the documents needed. Identity Proof - Any one of PAN Card, Voter ID, Passport, Driving License, Aadhaar Card Residence Proof - Any one of Aadhaar Card, Voter ID, Passport, Driving License Duly signed and filled application form with photographs pasted at the prescribed space
How to Apply for SBI KCC Loan? To apply for a loan, you must visit the nearest SBI branch and ask for a KCC application form. Fill the form by mentioning your personal and agricultural details. Submit the form along with relevant documents to the concerned bank official. The details would be verified before the bank gives an approval to the loan.