KCC loans hinge on what is known as the Scale of Finance (SoF), which is a measure of the loans that can be given per acre per crop. For instance, if the crop is paddy the farmer gets, say, about ₹23,000 per acre whereas if it is sugarcane, the amount is ₹44,000.
How is finance scale calculated?
Scale of finance for the crop (as decided by District Level Technical Committee) x Extent of area cultivated + 10% of limit towards post-harvest/household/ consumption requirements + 20% of limit towards repairs and maintenance expenses of farm assets + crop insurance and/or accident insurance including PAIS, health …
How is the limit for KCC calculated?
year: Scale of finance for the crop (as decided by District Level Technical Committee) x Extent of area cultivated + 10% of limit towards post-harvest / household / consumption requirements + 20% of limit towards repairs and maintenance expenses of farm assets + crop insurance, PAIS & asset insurance.
Who decides finance scale?
District Level Technical Committee
Scale of finance is the finance required for raising a crop per unit cultivated area, i.e. acre or hectare. The scale of finance for different crops in a district is decided every year by District Level Technical Committee.
What is the limit of KCC loan?
A flexible limit of ₹ 10, 000 to ₹ 50, 000 may be provided (as Flexi KCC) based on the land holding and crops grown including post-harvest warehouse storage related credit needs and other farm expenses, consumption needs, etc., plus small term loan investment(s) like purchase of farm equipment(s), establishing mini …
What are the features of scale of finance?
Scale of finance is the finance required for raising a crop per unit cultivated area, i.e. acre or hectare. The scale of finance for different crops in a district is decided every year by District Level Technical Committee (DLTC).
What are credit costs?
The cost of credit is the additional amount, over and above the amount borrowed, that the borrower has to pay. It includes interest, arrangement fees and any other charges. Some costs are mandatory, required by the lender as an integral part of the credit agreement.
How can I check my Kisan KCC status?
Step 1: Go to the CSC PM KCC Portal, by visiting the website, to Step 2: Now, log into the portal using your CSC ID and the password. Step 3: Select ‘View Status’. Step 4: You will be redirected to a new page you need to enter your Kisan credit card application ID.
What are the limits of KCC credit card?
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. The premium is borne by both the bank and borrower in a 2:1 ratio.
How does KCC work with Kisan Credit card?
Using the KCC, the cardholder can withdraw funds for buying seeds, fertilizers, fuel for machinery, etc. They can also pay directly at the merchant POS terminal using the card. Term Loan- Banks also offer term loans on Kisan Credit Cards to help the farmers meet bigger agricultural needs such as equipment purchase, irrigation cost, etc.
What kind of insurance is available for KCC credit card?
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. The premium is borne by both the bank and borrower in a 2:1 ratio.
What is the tenure of RKCC credit card?
RKCC will be in the nature of revolving cash credit account. Credit balance in the account, if any, will fetch interest at Savings bank rate. Tenure:5 years, with 10% annual increase of limit every year, subject to annual review. Repayment: The repayment period as per the crop period (Short/ Long) and marketing period for the crop.
