Retail Agri Loan: Kisan Gold Card Overview

Retail Agri Loan: Kisan Gold Card Overview

The Kisan Gold Card is a tailored financial solution for farmers to meet their agricultural and personal needs. It provides funding for crop production, post-harvest expenses, machinery purchases, irrigation equipment, and storage structure construction, ensuring comprehensive support for farming activities.

Discover the Kisan Gold Card, a one-stop financial solution for farmers offering loans, insurance, and more to support agricultural and personal needs.

Key Features

1. Eligibility
   • Individual farmers or joint borrowers.
   • Major applicants up to 60 years; above 60 years, a legal heir is mandatory.
2. Types of Facilities
   • Cash Credit/Overdraft: Covers crop production costs, post-harvest expenses, consumption needs, and repair/maintenance.
   • Term Loan: Supports land development, farm equipment purchases, and irrigation investments.

1. Quantum of Finance
   • Determined by cultivated land, cropping pattern, and scale of finance.
2. Security Requirements
   • Primary Security: Hypothecation of crops and assets created from the loan.
   • Collateral Security: Mortgage of agricultural land, urban property, or liquid security.
3. Tenure
   • Loan tenure of up to 5 years.

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1. Additional Benefits
   • Insurance: Free personal accidental insurance for farmers up to ₹2,00,000.
   • Crop Coverage: Available for notified crops under the Pradhan Mantri Fasal Bima Yojana.
   • Debit Card: Issuance of RuPay Farmer Platinum Debit Card for seamless transactions.
2. Documentation Requirements
   • Application Form
   • KYC documents of borrower, co-borrower, or guarantor
   • Copy of land records
   • Government land rate document for agricultural land
   • Updated bank passbook or statement

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Fees and Charges

1. Supervision Charges
   • Charged based on loan amount and facility type, ranging from ₹250 to ₹3,000, depending on the loan size.
   • For pisciculture cases, charges apply annually.
2. Processing Fee
   • Regular Kisan Gold Card: 2% of the loan amount.
   • Kisan Gold Card Saral: ₹2,500.

1. Foreclosure Charges
   • 4% of the outstanding amount for fixed-rate term loans or at the time of closure.
2. Penal Charges
   • 2% per month for default in payment.
   • 0.167% per month for non-compliance with loan terms or collateral discrepancies.

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1. Other Charges
   • Stamp duty, legal, valuation, and vetting charges as per applicable state laws.
   • Cheque bounce charges: ₹550.
   • Cheque swapping charges: ₹500 per transaction.
   • CIBIL report copy charges: ₹50 per request.
   • Repayment schedule charges: ₹200 per request.

Average Annual Percentage Rate (APR)

For the period July 2024 to September 2024, the following rates were offered:

• Interest Rate Range (IRR): 9.00% to 19.25% (Average: 11.82%).
• Annual Percentage Rate (APR): 9.00% to 19.29% (Average: 11.83%).

Note: These rates exclude accounts under government schemes.

The Kisan Gold Card is an all-in-one solution for farmers, enabling them to access funds for their agricultural and personal needs with ease.

Disclaimer: This is not financial or investment advice. Please conduct your own due diligence or seek expert guidance for financial planning.

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