Kisan Credit Card: Urgent money requirement for domestic needs? Know this amazing feature of KCC
Do you know this important fact about the Kisan Credit Card (KCC). This amazing credit facility can help you meet some of your urgent domestic expenses at your time of need
Do you know this important fact about the Kisan Credit Card (KCC). This amazing credit facility can help you meet some of your urgent domestic expenses at your time of need. Kisan Credit Card scheme which is a credit scheme to farmers for small loans is primarily meant for meeting financial requirements related to crops. But, some part of that loan can be used to meet your domestic needs.
You can utilise 10 per cent of the short term limit under the KCC scheme for household consumption purposes. The Reserve Bank of India (RBI) on its website has put information with regards to this under its Financial Education (for Farmers) section. The purpose of KCC scheme is to enable farmers meet their crop loan requirements. The RBI The banking regulator advises farmers to not utilise large amounts towards meeting your household expenses as this could limit a farmer's ability to generate income and repay the loan. Timely payment of KCC loans enable farmers to get further benefits on future loans.
The RBI recently issued an advisory asking banks to extend the benefit of interest subvention (IS) of 2 percent and Prompt Repayment Incentive (PRI) of 3 per cent for short term crop loans up to Rs 3 lakh to farmers whose accounts have become due or shall become due between March 1, 2020 and May 31, 2020.
The Kisan Credit Card (KCC) scheme was launched in 1998 with the aim of providing short-term formal credit to farmers. With KCC, owner cultivators as well as tenant farmers can avail loans to meet their agricultural needs under this scheme at attractive rates of interest.
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To help farmers have greater access to the scheme, the government has been taking several steps to simplify the application process.
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