Good news for lakhs of Indian farmers. Now everybody can get a loan easily. Indeed, you have understood correctly. The Reserve Bank of India (RBI) has raised the threshold for farmers to obtain collateral-free loans from Rs 1.6 lakh to Rs 2 lakh. Starting January 1, 2025, farmers are allowed to borrow up to Rs 2 lakh. The new directive has instructed banks nationwide to eliminate collateral and margin requirements for agricultural and related activity loans up to Rs 2 lakh for each borrower.
“The choice has been made considering increasing input expenses and the necessity to enhance credit availability for farmers.” “This action will greatly aid over 86 percent of small and marginal farmers with landholdings,” the statement remarked.
Loan of 300,000 at 4%
The action is anticipated to enable straightforward access to Kisan Credit Card (KCC) loans and will align with the government’s updated interest subvention program. It will offer loans of up to Rs 3 lakh at an effective interest rate of 4 percent.
How to Apply Online for Kisan Credit Card (KCC)?
– Go to the official site of your chosen bank or government platform to apply for the KCC.
Input your personal details (name, contact, Aadhaar) along with farming information (land records, crops).
– Submit the necessary documents including Aadhaar, PAN, land records, and banking information.
– Choose the loan amount (up to Rs 2 lakh without needing any collateral) and the duration of the loan.
– Verify your information and submit your application.
– Utilize the reference number to monitor the progress of your application.
Once approved, receive your Kisan Credit Card either by mail or at the bank.
– Adhere to the bank’s guidelines to enable your KCC.
