What happens to KCC loan after death?
What happens to KCC loan after death?
Farmers having KCC credit are covered under personal accidental insurance up to Rs 50,000 for permanent disability and death and up to Rs 25,000 for other risks. The interest levied on the loan under KCC scheme is around 7 per cent simple interest per annum.
What is a KCC loan?
The Kisan Credit Card (KCC) scheme is a credit scheme introduced in August 1998 by Indian banks. The scheme has short term credit limits for crops, and term loans. KCC credit holders are covered under personal accident insurance up to ₹50,000 for death and permanent disability, and up to ₹25,000 for other risk.
What is the crop loan?
Crop loan is a short term advance that is given to the farmers and agriculturists by banks and co-operative societies. The loan amount can be used to purchase improved seeds, fertilizers, machinery etc. The crop loans are provided as agriculture is a priority sector.
Can I buy tractor with Kisan Credit Card?
Those farmers who have made their Kisan Credit Card under this Kisan Credit Card Scheme can avail a loan of up to three lakh rupees. Farmers can use this loan amount to buy agricultural machinery, seeds, fertilizers and pesticides! Also farmers can use this credit card to buy tractors as well!
Who is eligible for crop loan?
Crop Loans Minimum age – 18 years. Maximum age – 75 years at the end of loan tenure. For borrowers above the age of 60, co-borrower less than 60 years old is mandatory. Such a co-borrower show be legal heir/immediate family member.
What is PM Kisan KCC?
The Kisan Credit Card (KCC) scheme is a Central scheme that provides farmers with timely access to credit. The scheme was launched in 1998 with the aim to provide short-term formal credit to farmers. It was created by the National Bank for Agriculture and Rural Development (NABARD).
How is KCC loan interest calculated?
- The KCC provides short term loans to farmers at an interest rate of 4 per cent on the condition of timely payment.
- According to government-run State Bank of India, interest will be waived up to 3 per cent if the farmer repays the loan promptly.