Kisan Credit Card

The Kisan Credit Card is a credit card to provide affordable credit for farmers in India. It was started by the Government of India, Reserve Bank of India (RBI), and National Bank for Agricultural and Rural Development (NABARD) in 1998-99 to help farmers access timely and adequate credit. The Kisan Credit Card allows farmers to have cash credit facilities without going through timeconsuming bank credit screening processes repeatedly. Repayment can be rescheduled if there is a bad crop season, and extensions are offered for up to four years. The card is valid for three years and [1] subject to annual renewals. Withdrawals are made using slips, cards, and a passbook.

CC services offered by IDBI

Crop loan with Kisan Credit Card Credit to farmers or groups of farmers for crop loans, working capital or investment credit for viable agriculture purpose.

All farmers, owner cultivators, tenant cultivators, share croppers and individual farmers having agreement with institution are eligible for the card. Most banks in India that offer agricultural finance offer the Kisan Credit Card. [edit]Extent

of exposure

As per scale of finance specific to the crop and KCC norms. The interest rate is 7% (SI), out of which 3% subsidy is given by Government of India if aggregate credits are more than aggregate debits in a year. [edit]Details The card is valid for five years, of which crop loan and working capital components have to be renewed annually. Maximum limits: Rs. 50000/- for Rabi Crops. Rs. 50000/- for Kharif Crops. Eligibility: Individual/society. Repayment period: Kharif 31 January Rabi 31 July. 5 Collateral Security Charge on land in case loan is above Rs. 10000/- and two sureties if loan is below Rs. 10000/-.

Definition of Cash Credit facility

There are many ways to raise finance; Cash Credit is one of the many ways of raising finance. Cash Credit makes a provision by lender (mainly bank or financial institute) for loan (also called advance, finance, credit etc) by depositing the sanctioned amount of the loan into new account from which borrower (business organization) can withdraw as per requirement within permissible amount fixed by lender for specific time or period. Example: - say, ABC Ltd needs ` 1,15,000 for payment to supplier of raw materials. Bank permits`1,00,000 per day as cash credit limit for this period. In this situation ABC Ltd can withdraw only`1,00,000. Interest also calculated on ` 1,00,000 on daily basic, not on ` 1,15,000.