Kisan Update – Ever since the central government increased the Kisan Credit Card scheme limit to 5 lakh rupees, farmers have been experiencing enthusiasm. Previously, the government offered loans up to 3 lakh rupees on Kisan Credit Cards. However, this limit was increased by 2 lakh rupees. If you take a loan of up to 5 lakh rupees on a Kisan Credit Card, you will have to pay significantly less interest.
Farmers may be wondering how much interest they will have to pay annually on this loan. If you don’t know the total interest rate on a Kisan Credit Card, find out in this news article below. We will explain important facts about the Kisan Credit Card in this article.
How to get a loan on a Kisan Credit Card?
The central government’s Kisan Credit Card scheme offers short-term loans for farmers. This scheme provides a total loan of up to 5 lakh rupees. This loan covers 2 lakh rupees for crops and 2 lakh rupees for agricultural work. The government charges 9% interest on this loan per year.
There are some conditions. If you pay the interest on time, you receive a 2% subsidy and a 3% bonus for timely payment. Consequently, loans are provided under the Kisan Credit Card at a total annual interest rate of 4%. According to the government, farmers effectively pay 4% interest on the loan.
This is the cheapest agricultural loan. This means that a total interest payment of ₹20,000 per year on a loan of ₹5 lakh will be required. The loan must be renewed every year. The previous limit was ₹3 lakh. The decision to increase this limit was made due to farmer demand.
Application for a Kisan Credit Card
Farmers must first visit the bank’s website.
You will then see the Kisan Credit Card on the home page.
Clicking on the Kisan Credit Card will display the application option.
Clicking on Apply will open a new page.
Enter all your details and click Submit.
You will then see the Application Reference Number.
After this, if you are eligible, then the bank can contact you within 5 days.