When a KCC account will become NPA?

A loan granted for short duration crops is treated as an NPA (non-performing asset) if the instalment of principal or interest remains overdue for two crop seasons. Loans granted for long-duration crops turn NPAs if the instalment of principal or interest remains overdue for one crop season.

How does KCC become NPA?

A loan granted for short duration crops will be treated as NPA, if the instalment of principal or interest thereon remains overdue for two crop seasons. A loan granted for long duration crops will be treated as NPA, if the instalment of principal or interest thereon remains overdue for one crop season.

What happens if NPA increased?

A high level of NPAs suggests high probability of a large number of credit defaults that affect the profitability and net-worth of banks and also erodes the value of the asset. NPAs affect the liquidity and profitability, in addition to posing threat on quality of asset and survival of banks.

Does KCC require collateral?

The Government of India (GoI) gives up to Rs 1.6 lakh KCC loan without any collateral or guarantee to the small farmers who hold KCC. As per the tax and investment experts, farmers can take loans up to Rs 5 lakh KCC loan in 3 years. The KCC loan interest rate is also very low at 4 per cent per annum.

What are the conditions for KCC insurance?

12. Other Conditions: Besides the mandatory crop insurance, the KCC holder should have the option to take benefit of Assets Insurance, Personal Accident Insurance Scheme (PAIS), and Health Insurance (wherever product is available) and have premium paid through his KCC account.

What are the revised guidelines of the KCC scheme?

• All new KCC must be issued as per the revised guidelines of the KCC Scheme. At the time of renewal of existing KCC; farmers must be issued smart card cum debit card. (a) Work load of rural branches is considerably reduced as there is no need for repeated appraisal and processing of loan papers. Scheme.

What are the new norms to declare accounts as NPA?

The updated norms to declare the account as NPA are as follows as per RBI guidelines:- An asset, including a leased asset, becomes non-performing when it ceases to generate income for the bank.

What is the difference between NPA and non-performing assets?

An account is declared as NPA based on the recovery of installments and interest on loans and advances and other aspects as per RBI norms. An asset, including a leased asset, becomes non-performing when it ceases to generate income for the bank.