Central Kisan Credit Card ( CKCC)

Purpose

*To meet short term credit requirements for cultivation of crops/ dairy animals/fisheries/poultry birds/other small ruminants.
*To provide Post-harvest expenses & Produce Marketing loans.
* To meet consumption requirement of farmers
* To meet working capital requirement for maintenance of farm equipments and other assets and activities allied to agriculture like dairy, fisheries etc.

Eligibility

*All Farmers - Individuals / Joint borrowers who are owner cultivators, tenant farmers, oral lessees, share croppers and Self Help Groups or Joint Liability Groups of Farmers, Farmers Producer organizations/ Farmers producer Companies

Nature of facility

*Short-term revolving credit

Limit

Cash Credit limit will be sanctioned for 5 years

*For the first year,
limit will be fixed on the basis of
- Scale of finance for the crop/ dairy animals etc, plus
- 10% of limit towards post-harvest/household/consumption expenses plus

- 20% of limit towards repairs & maintenance, crop insurance, Personal Accident Insurance & asset insurance.
- For second and subsequent years the limit will be arrived at by adding 10% towards cost escalation over limit of the preceding year.

Margin

*Nil as it is inbuilt in the scale of finance.

Security

*Primary -
- Hypothecation of crops/dairy animals/fisheries/poultry birds/other small ruminants and other assets created out of bank's finance.
* Collateral -
- No collateral for limit upto Rs  1.60 Lakh.(In tie ups-up to Rs.3.00 Lakh- No security required)
- For limits above Rs 1.60 Lakh, collateral security is required.

Rate of Interest

Limit Upto Rs 3,00,000/- (Interest Subvention)
Above Rs 3.00 Lakh up to Rs 10.00 lacs
Above Rs 10.00 lakh upto Rs 100.0 lakh

7%

 

*MCLR + 2.50%
*MCLR + 3.00%

 

Interest Subvention

3% Prompt Repayment Incentive will be credited in CKCC accounts upto Rs.3 Lakhs of prompt repaying farmers so Net Interest rate on CKCC will be 4% for farmers paying promptly.

Processing Charges

Upto 3 lakh-Nil

Above 3 lakh- 0.30%

Repayment

*As per the anticipated harvesting and marketing of the crop.
*Limit will be valid for 5 years, subject to annual review.