Kisan Credit Card Yojana- The government is giving low-interest loans to farmers without guarantee, know about this scheme.
If we talk about the recent days or years, then a concrete step has been taken by the Central and State Governments in India to increase the income of farmers and reduce the challenges faced by them in agricultural practices. Keeping in mind the financial burden often borne by farmers, various schemes have been implemented to support them, especially in obtaining loans for farming activities. One such scheme is the Kisan Credit Card Scheme, which aims to provide accessible and affordable loan options to farmers. Let us know complete information about this scheme-
The primary objective of the Kisan Credit Card Scheme is to provide financial assistance to farmers, enabling them to meet their agricultural needs without facing the burden of excessive interest rates or stringent credit requirements.
Under the scheme, farmers can avail of loans through Kisan Credit Card at concessional interest rates. Banks generally charge a 9 percent interest rate, and the government provides a subsidy of 2 percent, resulting in an effective interest rate of 7 percent for farmers.
Farmers who repay their loans on time get an additional rebate of 3 percent on the interest rate. This incentive encourages timely repayment and reduces the financial burden on farmers.
Loans availed through the Kisan Credit Card can be used for various agricultural purposes including purchasing seeds, fertilizers, pesticides, and farm equipment. This flexibility enables farmers to invest in the resources needed to increase their agricultural productivity.
Through the Kisan Credit Card, farmers can get loans up to Rs 1.6 lakh without any guarantee. Additionally, a short-term loan of Rs 3 lakh can be availed, which will provide adequate financial assistance to farmers for their farming endeavors. This card remains valid for five years, ensuring continuous support to farmers over an extended period.
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