With more than 77 million agricultural credit accounts, agriculture loans are popularly used by farmers to fund all their financial needs for cultivation and harvesting. Such credit help boost the primary sector of India by charging especially low agriculture loan interest rates, as more than 50% of the total workforce of the country is employed in this sector.
Agricultural loans can be taken for various purposes, such as –
- Purchase of land for cultivation.
- Procuring farming equipment requirements.
- To fund working capital.
- To finance seasonal costs.
- For animal husbandry requirements.
- Funding horticulture business.
These extensive uses of agricultural loans, along with added benefits of minimal documentation, specially lower agriculture loan interest rates, instant approval, as well as flexible loan tenors, etc. are customised to help farmers.
However, it is vital to first satisfy the eligibility criteria to avail the above mentioned benefits successfully.
- Borrowers should be between 18 and 70 years of age.
- A collateral guarantee is required, generally in the form of asset to be purchased.
However, this facility is not available at throughout the country. There are plenty of alternative ways of financing agricultural requirements. One of the most popular substitutes of agrarian loans is the Kisan Credit Card Scheme.
Provided via numerous financial institutions such as Bajaj Finserv, this government initiative was launched in 1998 to boost digitisation of workers engaged in the primary sector of India. The NBFC also offers numerous other industry-leading credit cards such as the Bajaj Finserv RBL Bank SuperCard.
They also provide pre-approved offer on credit cards that make the application process quicker and easier. These offers are available on numerous other financial products as well including home loans, business loans, personal loans, etc. You can check out your pre-approved offer by providing your name and phone number.
All NBFCs issue a credit card in the name of the borrower choosing to opt for this scheme, making him/her entitled to several benefits. For example, if you select Bajaj Finserv for availing Kisan Credit Scheme, you are eligible for a Bajaj credit card.
The benefits of such a credit card include –
- Kisan credit card interest rates are lower than regular credit card rates just like the lowered agriculture loan interest rates.
- Loan tenors are flexible, depending upon the harvest season.
- Crop insurance is extended to the applicants, thus protecting their financial interests during times of hardship. This benefit is provided by the National Crop Insurance Scheme of India. As such, the available credit limit is revised by the issuer.
- It covers the financial requirements of all sorts of agricultural needs.
- Accidental insurance coverage is also extended to the farmers.
To enjoy these features and aids, you need to be the owner-cultivator of your agricultural land. However, members of self-help groups, sharecroppers, tenant farmers, as well as oral lessee, are also eligible for a credit card under this scheme.
An individual farmer can easily apply for a card under the Kisan Credit card scheme by visiting the official website of the chosen financial institution and providing all the necessary details along with the duly required documents. KYC documents such as Aadhaar Card, PAN card, etc. along with the documents proving ownership of agricultural land is mandatory.
It is to note that a Kisan credit card has a different operating technique when compared to standard credit cards. The user is not entitled to reward points and other benefits.
Discounts, cash backs, fuel surcharge waivers and air miles are some of the things to do with your credit card reward points gained on regular credit cards like the SuperCard.
If you want to avail the various discounts and higher savings through the reward points, you can easily apply for a credit card online. The main advantage of Bajaj Finserv RBL Bank credit cards is its numerous features which include hassle-free emergency personal loans.
Agricultural growth is slowly witnessing a steady decline with only 15.84% contribution towards the GDP, even though it determines the livelihood of more than 50% of the entire population of the country. Subsidised agriculture loan interest rates and various government-sponsored policies such as the Kisan credit card scheme aims to refuel this sector which still unwaveringly serves as the backbone of the Indian economy and demography.
