Sure, here’s an article about Kisan Credit Card interest:
Kisan Credit Card interest rates and charges
Kisan Credit Card (KCC) is a credit scheme that has been introduced by the Government of India with an aim to provide financial assistance to farmers in the country. The scheme is being implemented by all the public sector banks, regional rural banks and cooperative banks.
The KCC is a type of revolving cash credit account that can be used by farmers for their crop production requirements, post-harvest expenses, marketing expenses, etc. The interest rates and charges on the KCC vary depending on the bank, credit limit, and other factors. Here are the details of interest rates and charges associated with KCC:
Interest rate:
The interest rate on the KCC varies from bank to bank and is subject to change from time to time. As per the current guidelines of the Reserve Bank of India (RBI), the interest rate on KCC should not exceed the benchmark Prime Lending Rate (PLR) of the respective bank. The interest rate on KCC is applied on a daily basis and is calculated on the outstanding balance.
Processing fee:
The processing fee for the KCC also varies from bank to bank. In general, banks charge a nominal fee of Rs. 100 to Rs. 500 for processing the KCC application. However, some banks waive off the processing fee for the KCC.
Renewal fee:
There is no renewal fee associated with the KCC. However, the borrower has to renew the KCC every five years to continue using the credit facility.
Insurance:
Some banks offer insurance coverage for KCC holders against crop loss, death, and disability due to accidents. The premium for such insurance coverage is a nominal amount that is deducted from the KCC account.
Other charges:
In addition to the above-mentioned charges, there may be other charges associated with KCC, such as penalty charges for late payment, documentation charges, etc. These charges vary from bank to bank.
To sum up, Kisan Credit Card is a credit scheme that provides financial assistance to farmers. The interest rates and charges on the KCC vary from bank to bank and are subject to change from time to time. Farmers are advised to compare the interest rates and charges offered by various banks before availing the KCC.