Recently Indian Banking Association IBA has issued advisory guidelines requesting banks to waive off...........

Economic Affairs Agricultural Finance

Recently, Indian Banking Association (IBA) has issued advisory guidelines requesting banks to waive off the processing, documentation, inspection, ledger folio charges and all other service charges for Kisan Credit Card /crop loans upto 3 Rs lakh. Which of the following statements are correct Kisan credit card scheme?

1. Under this scheme, Interest subvention @2%p.a.is available for loan amount upto Rs. 3 Lacs.

2. This is a provision of debit card with a minimum fees of Rs 10 per year.

Code:

1 only

2 only

Both 1 and 2

None of the above

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Explanation:

Kisan Credit Card Scheme:

Features and benefits

Get interest at saving bank rate on credit balance in KCC account
Free ATM cum debit card (State Bank Kisan Card) for all KCC borrowers
Interest subvention @2%p.a.is available for loan amount upto Rs. 3 Lacs
Additional interest subvention @3% p.a. for prompt repayments
notified crops / notified areas are covered under crop insurance for all KCC loans

Eligibility :

All farmers – individuals/Joint cultivator owners
Tenant farmers, oral lessees and share croppers etc.
SHGs or Joint liability groups including tenant farmers.

Quantum of loan:

Quantum of loan for 1st year will be assessed based on Cost of cultivation, post-harvest expenses and farm maintenance cost
For subsequent 5 year loan will be sanction on the basis of increase in scale of finance